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2001-2002 CAFRCITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 309 2002 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 307 2002 CITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS I N C O R P O R A '1, E D l 9 9 I Prepared By: City of Chino Hills Finance Department INTRODUCTORY SECTION CITY OF CHINO HILLS TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents Page Number Letter of Transmittal VII Organizational Chart XVI City Officials XVII Certificate of Achievement for Excellence in Financial Reporting XVIII FINANCIAL SECTION AUDITORS' REPORT Independent Auditors' Report 1 GENERAL PURPOSE FINANCIAL STATEMENTS Exhibit A - Combined Balance Sheet - All Fund Types and Account Groups 2 Exhibit B - Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 4 Exhibit C - Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Governmental Fund Types 6 Exhibit D - Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types 9 Exhibit E - Combined Statement of Cash Flows - All Proprietary Fund Types 10 Notes to Financial Statements SUPPLEMENTARY SCHEDULES Schedule 1 - Balance Sheet - General Fund 13 42 Schedule 2 - Statement of Revenues, Expenditures and Changes in Fund Balances - General Fund 43 Schedule 3 - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General Fund 44 CITY OF CHINO HILLS TABLE OF CONTENTS Page Number SUPPLEMENTARY SCHEDULES (Continued) Schedule 4 - Combining Balance Sheet - All Special Revenue Funds 48 Schedule 5 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Special Revenue Funds 52 Schedule 6 - Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Special Revenue Funds 56 Schedule 7 - Combining Balance Sheet - All Capital Projects Funds 70 Schedule 8 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds 72 Schedule 9 - Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Capital Projects Funds 74 Schedule 10 - Combining Balance Sheet - All Enterprise Funds Schedule 11 - Combining Statement of Revenues, Expenses, and Changes 78 in Retained Earnings - All Enterprise Funds 80 Schedule 12 - Combining Statement of Cash Flows - All Enterprise Funds 81 Schedule 13 - Combining Balance Sheet - All Internal Service Funds 84 Schedule 14 - Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Internal Service Funds 85 Schedule 15 - Combining Statement of Cash Flows - All Internal Service Funds 86 Schedule 16 - Combining Balance Sheet - All Agency Funds Schedule 17 - Combining Statement of Changes in Assets and Liabilities - AII Agency Funds 92 Schedule 18 - Comparative Schedules of General Fixed Assets 98 IV CITY OF CHINO HILLS TABLE OF CONTENTS Page Number SUPPLEMENTARY SCHEDULES (Continued) Schedule 19 - Statement of General Fixed Assets by Function and Activity 99 Schedule 20 - Schedule of Changes in General Fixed Assets by Function and Activity 100 Schedule 21 - Comparative Schedules of General Long -Term Debt 101 STATISTICAL SECTION Last Six Fiscal Years General Governmental Revenues by Source 104 General Governmental Expenditures by Function 105 Secured Property Tax Levies and Collections 106 Assessed and Estimated Actual Values of Taxable Property 106 Property Value, Construction and Bank Deposits 107 Property Tax Rates - All Direct and Overlapping Governments 108 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds 108 Principal Taxpayers 109 Miscellaneous Statistics 110 0 THIS PAGE INTENTIONALLY LEFT BLANK VI December 20, 2002 CITY OF CHINO HILLS 2001 GRAND AVENUE CHINO HILLS, CALIFORNIA 91709 (909) 364-2600 • (909) 364-2695 FAx The Honorable Mayor and City Council City of Chino Hills, California City Council: Ed M. Graham W.C. `Bill" Kruger Gary G. Larson Gwenn E. Norton -Perry James S. Thalman The Comprehensive Annual Financial Report for the City of Chino Hills for the fiscal year ended June 30, 2002, is hereby presented by the City's Finance Department. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the various funds, account groups, and component units of the City of Chino Hills. All disclosures necessary to enable the reader to gain an understanding of the City of Chino Hills' activities have been included. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial, and statistical. The introductory section, which is unaudited, includes this transmittal letter, an organizational chart, and a list of the City of Chino Hills' principal elected and appointed officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on these general purpose financial statements. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi-year basis. THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity (the government) includes all the funds and account groups of the City of Chino Hills. The City of Chino Hills provides a full range of services including: police protection (via contract with the County of San Bernardino Sheriff's Department); solid waste disposal services (via contract with Chino Hills Disposal); the construction and maintenance of streets and infrastructure; economic development; recreational activities and cultural events. Fire protection services are provided by the Chino Valley Independent Fire District, an entity governed by its own independently elected board of directors and financed by its own share of property taxes, contractual charges, and other fees. M City of Chino Hills Transmittal Letter (continued) CHINO HILLS - A BRIEF PROFILE The City of Chino Hills was incorporated in December 1991 as a general law City and operates under the Council -Manager form of government. The City, located in southwestern San Bernardino County, has a population of 70,952 and has a land area of 46 square miles. The City is governed by a non-partisan five -member council elected to serve staggered four year terms. The City elections are consolidated with the statewide general election held in November of even numbered years. The City Council appoints the City Manager, City Clerk, and City Attorney as well as members of various commissions and citizen advisory groups ensuring a broad base of citizen input into the City's decision making process. Since its incorporation, the City continues to grow and is one of the few areas in Southern California in which significant numbers of single family residential units are still being constructed. The City is one of the largest master -planned communities in Southern California and, at build -out, is expected to have about 85,000 residents. A comprehensive financial plan was developed to fund all necessary infrastructure required for new residential and commercial development. Through the use of special assessment districts as well as benefit assessment districts and development fees, funds were made available for the installation of parks, infrastructure, and government facilities, and the maintenance of the City's open space, parks, and landscaped areas. The City has developed a reputation for being a family oriented community with significant amounts of recreation opportunities for its adults and youths. The City has historically been recognized as one of the safest communities in Southern California, and continues to be recognized as a healthy City. ECONOMIC CONDITION AND OUTLOOK Although the economic condition of the area in which the City is located (in southwestern San Bernardino County) points to future growth for the City of Chino Hills, in November, 1999, the residents of Chino Hills voted in Proposition "U" that essentially states that any new development proposed for a higher density that is allowed per the General Plan needs voter approval. This does not affect projects with densities equal to or lower than allowed per the General Plan or projects that already have approved tract maps. The City of Chino Hills shows a promising future for approved projects while new, higher density development may be difficult to implement due to the recent voter approved initiative. Chino Hills is one of the most desirable cities in the County of San Bernardino with median income nearly double the County average. The strong, positive reputation due to good schools and low crime is anticipated to keep fueling the demand for residential construction. In the 2001- 2002 fiscal year, 519 residential units were built. Residential construction was dominated by single-family tract homes though the developments include custom home lots and multi- family housing projects. It is estimated that at least 600 residential units will be completed in the 2002-03 fiscal year. Vlll City of Chino Hills Transmittal Letter (continued) Additionally, the City is aggressively seeking commercial economic development within the City. A number of retail commercial sites are available for development and the City is actively marketing these sites. In recent years several major retail outlets have located in the City as anchors for a retail power center. Recently, as a result of the City's economic developments, PetsMart has opened for business. At this time, however, the City is primarily a "bedroom community" with very little commercial and industrial businesses. MAJOR INITIATIVES AND ACCOMPLISHMENTS The major initiatives and accomplishments for the 2001-2002 fiscal year include: the completion of the first phase of the Monte Vista Water District interconnecting pipeline representing a three and one-half mile portion of the water line; the completion of the extension of Pomona-Rincon Road; the renovation of the City's maintenance facility; completion of Danbury Park; the completion of Central Avenue Bridge; and celebration of the City's 10 year anniversary. Future major initiatives include: the construction of a major sports park facility; completion of the second phase of the Monte Vista Water District interconnecting pipeline (total pipeline is 7 miles); completion of Fairfield Ranch neighborhood park; repair of Avenida Marguerite slope; and the construction of the Soquel Canyon Reservoir #20 reservoir and pump station. Other major initiatives include the update of the Parks and Open Space Master Plan and the Engineering/Landscape Standards and Specifications; develop City identification/monumental program; design and implement a neighborhood recognition program; and implement a trail maintenance management program. FINANCIAL INFORMATION Accounting System and Budgetary Controls. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. In City of Chino Hills Transmittal Letter (continued) In addition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, and capital projects funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for all other funds. Open encumbrances are reported as reservations of fund balance at the end of a fiscal year. Appropriations for outstanding encumbrances lapse at the end of a fiscal year and are re -budgeted as of July 1 in the next fiscal year. The following schedule presents a summary of general fund, special revenue funds, and capital projects funds' revenues for the fiscal year ended June 30, 2002, and the amount and percentages of increases and decreases in relation to prior year revenues. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Revenue Amount of Total from 2001 (Decrease) Taxes Special Assessments License and Permits Use of Money and Property Intergovernmental Development Fees Contributions from Property Owners Charges for Services Fines and Forfeitures Other Total Revenues $ 10,634 24.20 $ 954 9.86 5,321 12.11 7 0.13 1,855 4.22 (917) (33.08) 2,984 6.79 (1,896) (38.85) 2,894 6.59 420 16.98 9,149 20.82 736 8.75 558 1.27 208 59.43 8,070 18.37 (82) (1.01) 292 0.67 25 9.36 2,178 4.96 (795) (26.74) $43,935 100.00 ($1,340) (2.96) The principal changes in the revenue were the increases in the Taxes, Contributions from Property Owners, and Intergovernmental categories, and the decreases in the License and Permits, Use of Money and Property, and Other categories. The increase in Taxes is principally due to the increase in sales tax generated from the new retail establishments that have opened for business in the City. The increase in the Contributions from Property Owners was caused by an increase in revenue received to finance the construction of infrastructure needed for new development. The Intergovernmental revenue, increase reflects two events, the increase was a result of the increase in the City population as well as the increase in allocable revenue from the gas tax fees and an increase in grant activity. The decrease in the license and permits was due to the decrease in the submission of residential tentative tract map activity and a decrease in other development activity for the fiscal year. 0 City of Chino Hills Transmittal Letter (continued) The following schedule presents a summary of general fund, special revenue funds, and capital project funds' expenditures for the fiscal year ended June 30, 2002, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Expenditure Amount of Total from 2001 (Decrease) Current: General Government $ 4,579 9.67 $ (154) (3.25) Public Safety 2,266 4.78 99 4.57 Public Works 3,615 7.63 (329) (8.34) Community Development 4,347 9.18 440 11.26 Cultural and Leisure 13,231 27.93 (567) (4.11) Contributions to Assessment Districts 1,761 3.72 (1,111) (38.68) Capital Outlay 14,364 30.32 10,477 269.54 Debt Service: Principal Retirement 2,138 4.51 (1,620) (43.11) Interest and Fiscal Charges 1,073 2.26 (89) (7.67) Total Expenditures $47,373 100.00 $ 7,146 17.76 The expenditure increase for Capital Outlay was due to completion of capital projects and work in progress on the major sports park facility. The public safety increase was due to the increase in police service staffing and programs offered to the City residents. The decrease in the expenditures for Contributions to Assessment Districts and Debt Service expenditures primarily reflects the decrease in the development related activity within the City for the fiscal year. Fund Balance Changes Within The General Fund. The General Fund balance decreased by $4,979,734 from $23,286,489 in 2000-01 to $18,306,755 in 2001-02. The above fund balance amounts include reserved, unreserved but designated, and unreserved/undesignated amounts. The decrease is primarily due to budgeted Operating transfers out, representing capital improvements, expenditures, utilizing fund balance reserves for special projects. The operation expenditures of the General Fund reflects significant expenditure savings. Refer to Schedule 3 on page 44 and 45 of the report for the budgetary comparisons of revenues and expenditures. Enterprise Operations. The City has two enterprise operations: the Water Utility and Sewer Utility. For both utilities, the City is responsible for installation of transmission and distribution lines as well as maintenance on the facilities. However, the treatment of the imported water sold and the sewage generated within the City is provided by agencies in which the City is a member. X1 City of Chino Hills Transmittal Letter (continued) The water sales revenue increased by $1,419,238 (from $10,843,216 to $12,262,454), in the 2001-02 fiscal year primarily as a result of a 9.9 percent water rate increase and an increase in consumption per customer due to dryer than normal weather conditions. The net income from the fiscal year water utility activities was $6,807,934. This result is in contrast to last fiscal year's net income of $2,582,849. The principal reason for the increase in net income was due to a decrease in payment of developer obligations for the current fiscal year, and the water rate increase. The sewer utility operating revenue increased slightly by $135,081 from $3,929,177 received in the 2000-01 fiscal year to $4,064,258 in the current fiscal year. The net income from the sewer utility operations for the 2001-02 fiscal year is $1,495,001 in contrast with the $5,998,574 net income earned in the 2000-01 fiscal year. The increase in revenues is primarily attributed to the increase in the number of customers in the fiscal year. Fiduciary Funds. The City acts as an agent on behalf of community facilities districts, assessment districts, and the City employees' deferred compensation plan. The total bonds outstanding for all of the community facilities districts and assessment districts, for which the City has an agency responsibility, amounts to $56,645,000 as of June 30, 2002. This is a decrease of $3,960,000 from the total debt obligation of $60,605,000 outstanding as of June 30, 2001. Since the City is not obligated in any way on these bonds, they are not reported within the City's Long Term Debt Account Group. Debt Administration. The City's General Long Term Debt decreased by $2,692,243 from $47,913,463 reported in last fiscal year to $45,221,220 reported in this fiscal year. One of the principal reasons for the decrease was the net reduction of $2,486,330 in the Development Fee Program obligations, which constitutes about 96 percent of the General Long Term Debt. The total amount of debt outstanding in this program decreased from $45,889,866 in 2000-01 to $43,403,536 in 2001-02. The Development Fee Program obligations arose from the installation of major City infrastructure by the residential and commercial developers and the commitment of the City's development fee revenue to the repayment of this obligation. The City's Proprietary Fund long-term debt is recorded primarily in the Water Utility and Sewer Utility enterprise funds. The total long-term debt reported in these funds as of June 30, 2002 amounts to $38,528,407 and $23,207 respectively. The principal debt outstanding in these funds is the $27,625,000 of Certificates of Participation (C.O.P.) indebtedness included in the Water Utility Fund. C.O.P.'s were issued in 1996 for the purpose of refunding prior C.O.P debt issues. Additional C.O.P.'s were issued in 2002 for the acquisition, construction, and installation of certain improvements to the water system. Cash Management. Cash temporarily idle during the year was invested in demand deposits and pooled investment accounts operated by the State of California's Local Agency Investment Fund, the San Bernardino County Investment Pool, and the Los Angeles County Investment Pool. The average yield on maturing investments during the G1 City of Chino Hills Transmittal Letter (continued) fiscal year was about 3.7 percent, and the amount of interest earnings on all invested funds amounted to $4,365,485. This was $275,251 less than was earned in the past fiscal year. Risk Management. The City is a member of the California Joint Powers Insurance Authority (CJPIA), through which the City receives coverage for liability and workers compensation claims, as well as property damage and certain other coverage. The CJPIA is a consortium of local government agencies that was formed for the purpose of providing insurance coverage for its member agencies. The liability insurance coverage is funded through contributions paid to the CJPIA for the first $20,000 of loss, and through sharing losses with the other agencies for the $20,000 through $5,000,000 increment. Costs of covered claims above $5,000,000 are paid through reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. The workers' compensation program includes pooling of retained losses plus excess insurance. The City's self insured retention is $50,000 and is covered via deposits with the CJPIA. Claims from $50,000 to $500,000 are covered by the pool, and claims in excess of $500,000 are covered by insurance policies through the CJPIA. The excess insurance provides coverage to statutory limits. The City purchases its own insurance policies for property damage, earthquake and flood, and employee fidelity bonds. The deductible portion for each of these categories is $5,000, $100,000, and $5,000, respectively. OTHER INFORMATION Independent Audit. City policy requires that its financial statements be audited by a certified public accountant selected by the City Council. This requirement has been satisfied and the auditor's opinion is included in the financial section of this report. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chino Hills for its comprehensive annual financial report for the fiscal year ended June 30, 2001. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. M City of Chino Hills Transmittal Letter (continued) A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments. We would like to express our appreciation to members of the Finance Department staff who assisted and contributed to the preparation of this report. Their efforts over the past year toward upgrading the accounting and financial reporting systems of the City have contributed substantially to the improved quality of the information being reported to the citizens and City Council, to State agencies, and to other users of municipal financial reports. pectfully Submitted, Dn-�Ia4 N. LaBelle Penny . Angel City Wnager Interim Finance Director xiv THE CITY OF CHINO HILLS ORGANIZATION OF CITY GOVERNMENT OPERATING SUMMARY guy THIS PAGE INTENTIONALLY LEFT BLANK XVI CITY OF CHINO HILLS LIST OF ELECTED AND APPOINTED OFFICIALS ELECTED OFFICIALS - CITY COUNCIL Gwenn Norton -Perry James S. Thalman Ed M. Graham W.C. "Bill" Kruger Gary G. Larson Mayor Mayor Pro Tem Council Member Council Member Council Member APPOINTED OFFICIALS Douglas N. La Belle City Manager Linda D. Ruth Deputy City Manager/City Clerk Mark D. Hensley City Attorney Jeff Collier Community Development Director Michael Fleager Community Services Director Kathleen Gotch Deputy City Manager/Personnel Pat Hagler Public Facilities and Operations Director Stan McCartney Finance Director/City Treasurer xvn THIS PAGE INTENTIONALLY LEFT BLANK Certificate of Achievement for Excellence in Financial Reporting Presented to City of Chino Hills, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ca/P`'DF HEFiCF9J' UNITED STATES y ! AND H CANADA � CDRPDRATIDN 1A Pr sldent ICA Executive Director M THIS PAGE INTENTIONALLY LEFT BLANK XX FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK Lance 203 North Brea Boulevard �/� `1 Suite 203 , Sol s BrCA 92821-4056 �� Lunghard \(!7A'4) 672-0022 Fax (714) 672-0331 LLP �ERTIFIED PUBLIC ACCOUNTANTS www.lslcpas.com Brandon W. Burrows Donald L. Parker Michael K. Chu David E. Hale A Pro/esslona/ Corporation Donald G. Slater Richard K. Kikuchi Retired Robert C. Lance 1914.1994 Richard C. Soil INDEPENDENT AUDITORS' REPORT Fred J. Lunghard, Jr. 19x9.1999 To the Honorable Mayor and Members of the City Council The City of Chino Hills, California We have audited the accompanying general purpose financial statements of the City of Chino Hills, California, as of and for the year ended June 30, 2002, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Chino Hills management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Chino Hills as of June 30, 2002, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, issued by the Comptroller General of the United States we have also issued our report dated September 18, 2002 on our consideration of the City of Chino Hills internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplementary information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Chino Hills. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical information listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon. "6� 9—'44d' September 18, 2002 MEMBER CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CITY OF CHINO HILLS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2002 ASSETS AND OTHER DEBITS Cash and investments (Note 2) Restricted assets: Cash and investments (Notes 2) Cash and investments with fiscal agents (Note 2) Receivables (Note 3) Deposits Due from other funds (Note 4) Due from other agencies Inventories (Note 1) Lease payments receivable (Note 13) Due from other governments Due from developers Deferred charges (Note 1) Advance to other funds (Note 4) Investment in Water Facilities Authority (Note 12) Property, plant and equipment, net (Note 5) Amount to be provided for retirement of general long-term debt Total Assets and Other Debits LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts and contracts payable Salaries and benefits payable Deposits Retentions payable Due to other funds (Note 4) Due to other governments Due to Inland Empire Utilities Agency Due to developers Advances from other funds (Notes 4 and 9) Deferred revenue Compensated absences payable (Note 9) Funds held for others Accrued interest payable Long-term debt (Note 8 and 9) Total Liabilities Equity and Other Credits: Investment in general fixed assets Contributed capital (Note 14) Retained earnings Fund balances: Reserved (Note 15) Unreserved: Designated (Note 15) Undesignated Total Equity and Other Credits Total Liabilities, Equity and Other Credits See Notes to Financial Statements 2 Exhibit A Page 1 of 2 GOVERNMENTAL FUND TYPES $ 28,269,132 $ 36,829,682 $ 7,048,241 $ 1,482,083 $ 1,194,784 339,469 18,026 14,725 201,453 - 3,840,684 8,107,100 2,181,700 - 488,889 19,000 - 9,962,377 7,925,536 1,504,960 8,625,219 $ 4,777,876 1,956 4,779,832 8,386,740 16,801,795 7,625,094 - - 12,653,833 (6,118,331) 18,306,755 28,904,146 2,268,409 $ 28,269,132 $ 36,829,682 $ 7,048,241 Special Capital General Revenue Projects $ 25,063,734 $ 27,249,360 $ 5,233,440 - - 1,374,920 - - 397,039 1,082,113 2,687,603 13,258 68,869 - 29,584 268,097 - - 484,119 200,342 - - 1,512,877 - 1,302,200 5,179,500 - $ 28,269,132 $ 36,829,682 $ 7,048,241 $ 1,482,083 $ 1,194,784 339,469 18,026 14,725 201,453 - 3,840,684 8,107,100 2,181,700 - 488,889 19,000 - 9,962,377 7,925,536 1,504,960 8,625,219 $ 4,777,876 1,956 4,779,832 8,386,740 16,801,795 7,625,094 - - 12,653,833 (6,118,331) 18,306,755 28,904,146 2,268,409 $ 28,269,132 $ 36,829,682 $ 7,048,241 Exhibit A Page 2 of 2 3 FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY) General General Internal Fixed Long -Term Enterprise Service Agency Assets Debt 2002 2 0 0 1 $ 20,635,111 $ 2,958,940 $ 29,988,299 $ - $ - $ 111,128,884 $ 110,835,127 - - - - - 1,374,920 - 5,527,202 - 8,951,571 - - 14,875,812 10,506,616 2,631,421 52,555 362,508 - - 6,829,458 7,484,380 - - - - - - 15,550 117,810 - - - - 216,263 616,268 1,286,312 - - - - 1,554,409 97,511 91,550 - - - - 91,550 121,484 257,517 - - - - 257,517 872,247 - - - - - 684,461 654,470 2,624,750 - - - - 4,137,627 3,235,490 589,401 - - - - 589,401 453,969 12,555,084 1,500,000 - - - 20,536,784 18,170,306 4,133,032 - - - - 4,133,032 4,282,892 125,293,683 563,211 - 31,068,398 - 156,925,292 151,780,974 - - - - 45,221,220 45,221,220 47,913,463 $ 175,742,873 $ 5,074,706 $ 39,302,378 $ 31,068,398 $ 45,221,220 $ 368,556,630 $ 357,040,747 $ 1,694,658 $ 124,504 $ 105,558 $ - $ - $ 9,379,463 $ 7,480,670 49,761 3,086 - - - 410,342 320,944 947,040 - 3,755,753 - - 4,702,793 4,641,046 - - - - - 1,956 174,659 85 - - - - 216,263 616,268 5,977 - - - - 5,977 5,737 - - 1,426,677 - 1,426,677 5,190,571 8,160 - - - - 3,848,844 3,293,380 9,346,400 901,584 - - 20,536,784 18,170,306 - - - - - 488,889 602,808 103,300 5,292 - - - 127,592 119,650 11,400 - 33,112,806 - - 33,124,206 30,237,191 116,541 - - - - 116,541 86,290 30,009,533 - - - 45,221,220 75,230,753 70,202,152 42,292,855 132,882 39,302,378 - 45,221,220 149,617,080 141,141,672 - - - 31,068,398 - 31,068,398 33,693,321 95,871,532 2,349,112 - - - 98,220,644 100,242,165 37,578,486 2,592,712 - - - 40,171,198 29,648,813 - - - - - 18,516,919 19,245,989 - - - - - 24,426,889 30,518,471 - - - - - 6,535,502 2,550,316 133,450,018 4,941,824 - 31,068,398 - 218,939,550 215,899,075 $ 175,742,873 $ 5,074,706 $ 39,302,378 $ 31,068,398 $ 45,221,220 $ 368,556,630 $ 357,040,747 3 CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Taxes Special assessments Licenses and permits Use of money and property Intergovernmental Development fees Contributions from property owners Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Culture and leisure Community development Public safety Public works Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses Fund Balances: Beginning of Fiscal Year, as originally reported Restatements (Note 15) Beginning of Fiscal Year, as restated Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses End of Fiscal Year (Exhibit A) See Notes to Financial Statements 4 Exhibit B Page 1 of 2 GOVERNMENTAL FUND TYPES 329 4,694 Special Capital General Revenue Projects $ 10,634,417 $ - $ - - 5,320,617 - 1,855,446 - - 1,653,220 1,240,256 90,159 - 2,893,580 - - 9,149,145 - - - 558,156 5,151,686 2,918,222 - 291,808 - - 937,959 1,240,102 - 20,524,536 22,761,922 648,315 4,574,435 329 4,694 2,265,848 - - 3,615,385 - - 4,183,232 163,432 - 2,088,422 11,142,085 - - 1,760,808 - - 66,268 14,297,373 243,065 1,895,004 - 328,955 743,494 - 17,299,342 15,771,420 14,302,067 3,225,194 6,990,502 (13,653,752) - 603,118 - 123,236 1,395,632 12,828,200 (8,328,164) (5,899,414) - (8,204,928) (3,900,664) 12,828,200 $ (4,979,734) $ 3,089,838 $ (825,552) $ 23,286,489 $ 25,934,326 $ 3,093,961 - (120,018) - 23,286,489 25,814,308 3,093,961 (4,979,734) 3,089,838 (825,552) $ 18,306,755 $ 28,904,146 $ 2,268,409 Exhibit B Page 2 of 2 TOTALS (MEMORANDUM ONLY) 2002 2001 $ 10,634,417 $ 9,680,056 5,320,617 5,313,875 1,855,446 2,771,914 2,983,635 4,879,466 2,893,580 2,474,258 9,149,145 8,412,446 558,156 350,274 8,069,908 8,152,346 291,808 267,063 2,178,061 2,972,908 43,934,773 45,274,606 4,579,458 4,732,606 2,265,848 2,167,285 3,615,385 3,943,829 4,346,664 3,906,585 13,230,507 13,798,054 1,760,808 2,872,068 14,363,641 3,886,772 2,138,069 1,072,449 3,758,325 1,160,518 47,372,829 40,226,042 (3,438,056) 5,048,564 603,118 1,398,952 14,347,068 7,048,352 (14,227,578) (7,048,352) 722,608 1,398,952 $ (2,715,448) $ 6,447,516 $ 52,314,776 $ 46,098,958 (120,018) (231,698) 52,194,758 45,867,260 (2,715,448) 6,447,516 $ 49,479,310 $ 52,314,776 X CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Taxes Special assessments Licenses and permits Use of money and property Intergovernmental Development fees Contributions from property owners Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Cultural and leisure Community development Public safety Public works Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatements (Note 15) Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year (Exhibit A) See Notes to Financial Statements GENERALFUND Exhibit C Page 1 of 3 5,453,900 4,583,964 Variance - 2,599,400 2,279,752 Favorable Budget Actual (Unfavorable) $ 9,823,600 $ 10,634,417 $ 810,817 2,669,700 1,855,446 (814,254) 1,028,800 1,653,220 624,420 5,012,900 5,151,686 138,786 224,700 291,808 67,108 2,224,200 937,959 (1,286,241) 20,983,900 20,524,536 (459,364) 5,453,900 4,583,964 869,936 2,599,400 2,279,752 319,648 5,331,300 3,616,031 1,715,269 4,258,800 4,200,873 57,927 2,456,000 2,249,462 206,538 231,600 243,065 (11,465) 340,500 328,955 11,545 20,671,500 17,502,102 3,169,398 312,400 3,022,434 2,710,034 171,900 123,236 (48,664) (19,809,400) (8,328,164) 11,481,236 (19,637,500) (8,204,928) 11,432,572 (19,325,100) (5,182,494) 14,142,606 $ (19,325,100) $ 23,286,489 23,286,489 (19,325,100) $ 3,961,389 202,760 202,760 $ (4,979,734) $ 23,286,489 23,286,489 (4,979,734) $ 18,306,755 $ 14,345,366 14,345,366 $ 14,345,366 SPECIAL REVENUE FUNDS 500 329 Variance - 211,900 163,432 Favorable Budget Actual (Unfavorable) 5,247,800 1,760,808 3,486,992 5,275,700 5,320,617 44,917 1,101,500 1,240,256 138,756 5,056,400 2,893,580 (2,162,820) 12,098,800 9,149,145 (2,949,655) 3,012,700 2,918,222 (94,478) 1,221,900 1,240,102 18,202 27,767,000 22,761,922 (5,005,078) 500 329 171 211,900 163,432 48,468 13,930,500 11,172,909 2,757,591 5,247,800 1,760,808 3,486,992 79,500 75,084 4,416 3,577,000 1,895,004 1,681,996 808,200 743,494 64,706 23,855,400 15,811,060 8,044,340 3,911,600 6,950,862 3,039,262 2,500,000 603,118 (1,896,882) 1,432,600 1,395,632 (36,968) (17,320,600) (5,899,414) 11,421,186 (13,388,000) (3,900,664) 9,487,336 (9,476,400) 3,050,198 12,526,598 - 39,640 39,640 $ (9,476,400) $ 3,089,838 $ 12,566,238 $ 25,934,326 $ 25,934,326 $ - - (120,018) (120,018) 25,934,326 25,814,308 (120,018) (9,476,400) 3,089,838 12,566,238 $ 16,457,926 $ 28,904,146 $ 12,446,220 7 Exhibit C Page 2 of 3 CAPITAL PROJECTS FUNDS Variance - Favorable Budget Actual (Unfavorable) 93,900 90,159 (3,741) 13,426,900 558,156 (12,868,744) 10,ULU,000 UYO,O IJ 11 L,0!L,902L 6,100 4,694 1,406 80,682,100 22,684,113 57,997,987 80,688,200 22,688,807 57,999,393 (67,167,400) (22,040,492) 45,126,908 63,644,000 12,828,200 (50,815,800) 63,644,000 12,828,200 (50,815,800) (3,523,400) (9,212,292) (5,688,892) 8,386,740 8,386,740 $ (3,523,400) $ (825,552) $ 2,697,848 $ 3,093,961 $ 3,093,961 $ - 3,093,961 3,093,961 - (3,523,400) (825,552) 2,697,848 $ (429,439) $ 2,268,409 $ 2,697,848 CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Taxes Special assessments Licenses and permits Use of money and property Intergovernmental Development fees Contributions from property owners Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Cultural and leisure Community development Public safety Public works Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatements (Note 15) Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year (Exhibit A) See Notes to Financial Statements TOTALS (MEMORANDUM ONLY Exhibit C Page 3 of 3 62,271,700 43,934,773 (18,336,927) 5,460,500 4,588,987 Variance - 2,599,400 2,279,752 Favorable Budget Actual (Unfavorable) $ 9,823,600 $ 10,634,417 $ 810,817 5,275,700 5,320,617 44,917 2,669,700 1,855,446 (814,254) 2,224,200 2,983,635 759,435 5,056,400 2,893,580 (2,162,820) 12,098,800 9,149,145 (2,949,655) 13,426,900 558,156 (12,868,744) 8,025,600 8,069,908 44,308 224,700 291,808 67,108 3,446,100 2,178,061 (1,268,039) 62,271,700 43,934,773 (18,336,927) 5,460,500 4,588,987 871,513 2,599,400 2,279,752 319,648 5,331,300 3,616,031 1,715,269 4,470,700 4,364,305 106,395 16,386, 500 13,422,371 2,964,129 5,247,800 1,760,808 3,486,992 80,761,600 22,759,197 58,002,403 3,808,600 2,138,069 1,670,531 1,148,700 1,072,449 76,251 125,215,100 56,001,969 69,213,131 (62,943,400) (12,067,196) 50,876,204 2,500,000 603,118 (1,896,882) 65,248,500 14,347,068 (50,901,432) (37,130,000) (14,227,578) 22,902,422 30,618,500 722,608 (29,895,892) (32,324,900) (11,344,588) 20,980,312 - 8,629,140 8,629,140 $ (32,324,900) $ (2,715,448) $ 29,609,452 $ 52,314,776 $ 52,314,776 $ - - (120,018) (120,018) 52,314,776 52,194,758 (120,018) (32,324,900) (2,715,448) 29,609,452 $ 19,989,876 $ 49,479,310 $ 29,489,434 CITY OF CHINO HILLS Exhibit D COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Increase (Decrease) in Retained Earnings Retained Earnings: Beginning of Fiscal Year, as originally reported Restatement (Note 15) Beginning of Fiscal Year, as restated End of Fiscal Year See Notes to Financial Statements (77,844) (41,646) (119,490) - 8,302,935 187,219 8,490,154 8,950,387 1,893,468 99,403 1,992,871 TOTALS 10,196,403 286,622 INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 2002 2 0 0 1 Operating Revenues: 142,458 (103,098) 39,360 (587,067) Charges for services $ 16,326,712 $ 840,074 $ 17,166,786 $ 15,517,956 Permit and inspection fees 96,061 - 96,061 80,409 Meter and installation fees 130,373 - 130,373 196,690 Other 5,400 - 5,400 10,812 Total Operating Revenues 16,558,546 840,074 17,398,620 15,805,867 Operating Expenses: Purchased water 5,811,918 - 5,811,918 5,083,345 Salaries and benefits 1,171,479 74,341 1,245,820 1,115,733 Utilities 653,015 - 653,015 609,186 Contractual services 2,817,333 114,442 2,931,775 2,691,390 Depreciation 3,146,198 210,503 3,356,701 3,129,123 Amortization 391,823 - 391,823 386,125 Repairs and maintenance 462,910 269,450 732,360 483,860 Services and supplies 170,075 125,623 295,698 246,985 Other general and administrative 1,959,043 8,595 1,967,638 1,745,055 Total Operating Expenses 16,583,794 802,954 17,386,748 15,490,802 Operating Income (Loss) (25,248) 37,120 11,872 315,065 Nonoperating Revenues (Expenses): Interest earnings 1,372,155 180,771 1,552,926 2,001,466 Contributions from developers 5,159,478 - 5,159,478 9,074,218 Other revenues 3,527,364 10,974 3,538,338 2,819,425 Gain (loss) on disposal of assets 2,857 - 2,857 (373,467) Interest expense (1,499,967) - (1,499,967) (1,416,262) Developer reimbursement agreements (6,000) - (6,000) (3,327,741) Loss on investment in Water Facilities Authority (149,860) - (149,860) (142,317) Total Nonoperating Revenues (Expenses) 8,406,027 191,745 8,597,772 8,635,322 Net Income (Loss) before Operating Transfers 8,380,779 228,865 8,609,644 8,950,387 Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Increase (Decrease) in Retained Earnings Retained Earnings: Beginning of Fiscal Year, as originally reported Restatement (Note 15) Beginning of Fiscal Year, as restated End of Fiscal Year See Notes to Financial Statements (77,844) (41,646) (119,490) - 8,302,935 187,219 8,490,154 8,950,387 1,893,468 99,403 1,992,871 1,890,482 10,196,403 286,622 10,483,025 10,840,869 27,239,625 2,409,188 29,648,813 19,395,011 142,458 (103,098) 39,360 (587,067) 27,382,083 2,306,090 29,688,173 18,807,944 $ 37,578,486 $ 2,592,712 $ 40,171,198 $ 29,648,813 A CITY OF CHINO HILLS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Adjustment to prior expenses Other revenue Changes in Assets and Liabilities: (Increase) decrease in accounts receivable (Increase) decrease in accrued interest receivable (Increase) decrease in due from other funds (Increase) decrease in due from other agencies (Increase) decrease in due from developers (Increase) decrease in inventories Increase (decrease) in accounts and contracts payable Increase (decrease) in salary and benefits payable Increase (decrease) in customer deposits Increase (decrease) in due to other governments Increase (decrease) in funds held for others Increase (decrease) in due to other funds Increase (decrease) in compensated absences Increase (decrease) in accrued interest payable Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Legal settlement Contribution from other funds Operating transfers out Decrease (increase) in advances to other funds Decrease (increase) in advances from other funds Net Cash Provided (Used) by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds of long term debt Repayment of capital lease Repayment of 1996 Certificates of Participation Repayment of advances for construction Repayment of CVIFD note Contributions from developers Interest paid Purchases of property, plant and equipment Purchases of intangible assets Proceeds from sale of property Lease payment received Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest on investments Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Investments Cash and Investments at Beginning of Year Cash and Investments at End of Year See Notes to Financial Statements Exhibit E Page 1 of 2 466,221 (286,938) 179,283 (4,042,472) 1,372,155 1,372,155 5,159,492 21,002,821 $26,162,313 10 180,771 1,552,926 TOTALS 1,552,926 INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 2002 2 0 0 1 $ (25,248) $ 37,120 $ 11,872 $ 315,065 3,538,021 210,503 3,748,524 3,515,248 172,372 - 172,372 (581,661) 3,527,364 - 3,527,364 2,814,019 (547,717) (4,088) (551,805) (85,136) 127,003 12,020 139,023 (25,130) (25,230) - (25,230) 9,932 (1,277,423) - (1,277,423) 1,869 (593,679) - (593,679) (507,100) 29,934 - 29,934 (21,025) 96,666 39,635 136,301 (66,007) 11,636 1,369 13,005 2,507 (130,726) - (130,726) 71,987 240 - 240 - - - - (2,423) 5 - 5 3 6,941 1,001 7,942 (4,941) 30,251 - 30,251 (2,596) 4,965,658 260,440 5,226,098 5,119,546 4,940,410 297,560 5,237,970 5,434,611 - 1,262 1,262 - - 7,512 7,512 - (77,844) (41,646) (119,490) - (1,541,450) - (1,541,450) (5,154,942) - - - 5,187,400 (1,619,294) (32,872) (1,652,166) 32,458 9,545,000 - 9,545,000 - (509) - (509) (308) (710,000) - (710,000) (670,000) (19,172) - (19,172) (45,124) (114,727) - (114,727) (114,727) 5,159,478 - 5,159,478 1,636,024 (1,499,967) - (1,499,967) (1,416,262) (12,318,396) (289,138) (12,607,534) (3,884,156) (194,564) - (194,564) - 4,348 2,200 6,548 24,095 614,730 - 614,730 213,993 466,221 (286,938) 179,283 (4,042,472) 1,372,155 1,372,155 5,159,492 21,002,821 $26,162,313 10 180,771 1,552,926 180,771 1,552,926 158,521 5,318,013 2,800,419 23,803,240 $ 2,958,940 $29,121,253 2,001,466 2,001,466 3,426,063 20, 377,177 $ 23,803,240 Reconciliation to the Balance Sheet: Cash and investments Cash and investments with fiscal agents Schedule of Non -Cash Transactions CITY OF CHINO HILLS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 INTERNAL ENTERPRISE SERVICE Exhibit E Page 2 of 2 TOTALS (MEMORANDUM ONLY) 2002 2001 $20,635,111 $ 2,958,940 $23,594,051 $23,801,315 5,527,202 - 5,527,202 1,925 $26,162,313 $ 2,958,940 $29,121,253 $23,803,240 Enterprise Funds: The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $1,992,226 and $1,438,708 respectively Internal Service Funds: There were no non-cash transactions during the fiscal year. See Notes to Financial Statements 11 THIS PAGE INTENTIONALLY LEFT BLANK 12 1 CITY OF CHINO HILLS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: Significant Accounting Policies Description of the Reporting Entity The City of Chino Hills (the "City") was incorporated December 1, 1991 under the General Laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: contracted police, lighting and landscaping, public improvements, water, sanitation, planning and zoning and general administrative services, contracted animal control, building and safety, community services and street and highway maintenance. The inclusion of an organization within the scope of the reporting entity of the City of Chino Hills is based on the provisions of GASB Statement No. 14. These organizations include those legally separate entities for which the City of Chino Hills is financially accountable. Financial accountability is established based on whether: (1) the City appoints a voting majority of the component unit's governing board, and (2) the component unit provides a financial benefit/burden to the City. As a result, the City of Chino Hills has no component unit. The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts which comprise its assets, liabilities, equity, revenues and expenditures/expenses. The various funds and account groups are defined as follows: Governmental Fund Types The General Fund is used to account for all revenues and activities financed by the City which are not accounted for in another fund. Special Revenue Funds are used to account for taxes and other revenues which are set aside for a specific purpose in accordance with law or administrative regulation. The Debt Service Fund is used to account for the current interest and principal payments on the general long-term debt. Capital Projects Funds are used to account for resources used for the acquisition and construction of major capital facilities. Proprietary Fund Types Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the stated intent is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered through user charges. The Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. 13 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) Fiduciary Fund Type Agency Funds are used to account for money and property held by the City as trustee or custodian. They are also used to account for various assessment districts for which the City acts as an agent for debt service activity. Account Groups The General Fixed Assets Account Group is used to account for capital assets of the City which are long-term in nature, and used in the operation of the City other than those which are capitalized in the proprietary fund type. The General Long -Term Debt Account Group is used to account for the City's outstanding long-term obligations other than those which are included in the proprietary fund type. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of the funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund - type operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. The modified accrual basis of accounting is followed for the governmental and fiduciary fund types (General, Special Revenue, Capital Projects and Agency Funds). Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual; i.e., when they become measurable and available to finance expenditures of the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes as available if they are remitted within 60 days after the year-end. Other revenues considered susceptible to accrual include taxpayer -assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.), certain state revenues, interest income and charges for services. Licenses and permits, fines and forfeitures are not susceptible -to accrual because they are not measurable until received in cash. Grant revenues have been recorded according to the provisions of GASB Code Section G60, whereby grant funds earned but not received are recorded as a receivable, and funds received before the related revenue recognition criteria have been met are reported as deferred revenue. Expenditures are recorded when the related fund liability is incurred, except that principal and interest on general long-term debt is recognized when due. The long-term liability to be paid from governmental funds' resources for accumulated unpaid vacation, sick pay, and compensatory time is recorded in the General Long -Term Debt Account Group as it is expected to be paid from future resources. The full accrual method of accounting is followed by the City's proprietary fund types. Revenues are recognized when earned, and expenses are recognized when incurred. Unbilled receivables are recorded at year-end. 14 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) In accordance with Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Budget Procedures All financial activities of the General Fund, Special Revenue Funds and Capital Projects Funds are part of the appropriated budget. Appropriated amounts are as originally adopted or as amended by the City Council throughout the year. The following general procedures are followed in establishing the annual budget: 1. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenues. The City Manager is authorized to transfer appropriations between programs and funds up to $10,000 without approval by the City Council. In addition, the City Manager has unlimited authority to transfer appropriations between items and accounts within the same department funded by the General Fund and within the same function funded by a special revenue, debt service or capital projects fund. The budgeted amounts used in the combined financial statements are the final adjusted amounts, which do not vary significantly from the original adopted budget. 3. The budget is formally integrated into the accounting system and employed as a management control device during the year for all funds. 4. The budget is adopted on an annual basis. 5. The budget is adopted on a basis which differs from generally accepted accounting principles in that encumbrances are included as expenditures. The modified accrual basis of accounting is employed in the preparation of the budget. 6. At fiscal year-end, operating budget appropriations lapse; however, incomplete capital improvement project appropriations within Capital Projects Funds, and authorized non - capital appropriations are rebudgeted in the following fiscal year. 7. The legally adopted budget requires that expenditures not exceed appropriations at the department level for the General Fund and the function level for Special Revenue and Capital Projects Funds. Encumbrances Encumbrance accounting is employed as an extension of formal budgetary integration in governmental funds. Encumbrances, such as purchase orders, contracts, and other commitments for the expenditure of monies, are reported as reservations of fund balances. Outstanding encumbrances at year-end are reappropriated in the following year. Investments Investments are stated at fair value (see Note 3). 15 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) Materials and Supplies Inventories Materials and supplies consist of water pipe, meters, valves, tools and miscellaneous items used in installing, monitoring and repairing these items. The water pipe, meters, valves and long-term items are removed from inventory and capitalized as fixed assets and depreciated upon installation. The remaining items are recorded as expenses when used in accordance with the consumption method. Inventories are recorded at the lower of cost or market on a FIFO (first -in, first -out) basis. General Fixed Assets General fixed assets are recorded as expenditures in the various governmental funds at the time of purchase. Such assets include land, buildings, building improvements, furniture, fixtures, vehicles and equipment, and are capitalized at historical cost in the General Fixed Assets Account Group. Donated fixed assets are recorded at their fair market value on the date donated. The cost of roads and streets, bridges, curbs and gutters, and lighting systems are not capitalized. No depreciation is provided on general fixed assets. Fixed Assets of Proprietary Funds Fixed assets purchased for the proprietary funds are capitalized at cost, while contributed assets are recorded at fair market value at the time received. Depreciation has been provided on a straight-line basis over their estimated useful lives as follows: Equipment 3 - 12 years Vehicles 4 - 10 years Utility Plant in Service 5 - 100 years Meters 15 years Pipeline in Service 40 - 75 years Interest is capitalized on proprietary funds' assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period in accordance with Statement of Financial Accounting Standards No. 62. No interest was capitalized in the proprietary funds in fiscal year 2001-2002. Intangible Assets of Proprietary Funds Intangible assets purchased for the proprietary funds are capitalized at cost, while contributed assets are recorded at fair market value at the time received. Amortization has been provided on a straight-line basis over their estimated useful lives as follows: Water Rights Capacity Rights Compensated Absences 40 years 40 years In accordance with GASB Code Section C60, the City of Chino Hills records a liability for vacation and compensatory leave that is earned and unused at year-end; sick leave liability recorded has been estimated using the "vesting method" which is calculated "... based on the sick leave accumulated at the balance sheet date by those employees who currently are eligible to receive termination payments as well as other employees who are expected to become eligible in the future to receive such payments." Vacation, sick and compensatory 16 City of Chino Hills Notes to Financial Statements (Continued) leave liabilities relating to governmental funds have been recorded in the General Long -Term Debt Account Group, as these amounts are expected to be paid from future resources; liabilities relating to proprietary funds are recorded within those respective funds. Deferred Charges Deferred charges consist of issuance costs representing capitalized costs incurred in connection with the issuance of long-term debt in proprietary funds. These costs are amortized on a straight-line basis, which approximates the interest method. Balance at July 1, 2001 $ 309,520 Cost of issuance on the 2002 Certificates of Participation 300,137 2001-2002 amortization expense (20,256) Balance at June 30, 2002 Cash and Cash Equivalents $ 589,401 All cash and investments, except those which are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents. Development Fees Development fees represent amounts collected from developers for building permits to begin residential and commercial building construction. Proceeds from such fees are used to fund improvements made in the City. Total Column on Combined Statements The total column on the Combined Financial Statements is captioned "Memorandum Only' to indicate that it is presented only to facilitate financial analysis and such data is not comparable to a consolidation. Data in this column does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Certain reclassifications have been made to the prior year financial data to conform with the current year presentation. Note 2: Cash and Investments The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. 17 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) Cash and investments at June 30, 2002 consist of the following: Petty Cash Pooled Deposits and Investments: Demand Deposits $ 4,356,140 Pooled Investments 106,769,344 Cash Deposits in Escrow Accounts Cash and Investments with Fiscal Agents: Other Total Cash and Investments $ 3,400 111,125,484 1,374,920 14,875,812 $127,379,616 The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash and investment balances for the quarter. Interest income from cash and investments with fiscal agents is credited directly to the related fund. Authorized Investments Under provision of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments: Bonds issued by the City Repurchase Agreements Registered state warrants or treasury notes or bonds of this State Bonds, notes, or warrants of any local agency within this State United States treasury notes, bonds, bills, or certificates of indebtedness Obligations of a federal agency or United States government sponsored agency Negotiable certificates of deposit Mutual Funds State and County Investment Pools Pooled Deposits/Credit Risk The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. The City may waive collateral requirements for deposits which are fully insured up to $100,000 by federal depository insurance. In accordance with GASB Statement No. 3, deposits are classified as to credit risk by three categories as follows: Category 1: Insured or collateralized with securities held by the City or by its agent in the City's name. 18 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3: U ncol lateral ized. The City's deposits are summarized below: Category Bank Fair 1 2 3 Balance Value Deposits Petty Cash Pooled Deposits: Demand deposit accounts, bank balance Deposits in Escrow Accounts Demand deposit accounts, bank balance Deposits with Fiscal Agents: Bank investment $ 3,400 $ - $ 100,000 4,841,569 - $ 3,400 $ 3,400 - 4,941,569 4,356,140 1,374,920 1,374,920 1,374,920 contracts - - 2,451,501 2,451,501 2,451,501 Total Deposits $ 103,400 $ 4,841,569 $ 3,826,421 $ 8,771,390 $ 8,185,961 Credit Risk Carrying Amount and Market Value of Investments The investments that are represented by specific identifiable investment securities are classified as to credit risk by three categories as follows: Category 1: Insured or registered, or securities held by the City or its agent in the City's name. Category 2: Uninsured and unregistered with securities held by the counterparty's trust department or agent in the City's name. Category 3: Uninsured and unregistered with securities held by the counterparty, or by its trust department or agent but not in the City's name. 19 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) All of the pooled investments and investments with fiscal agents are not represented by specific identifiable investment securities and, therefore, are not subject to categorization. The investments are summarized below. Fair Value Pooled Investments State of California Local Agency Investment Fund $ 38,160,000 Los Angeles County Investment Pool 30,860,363 San Bernardino County Investment Pool 37,748,981 Total Pooled Investments $ 106,769,344 Investments with Fiscal Accents Mutual Funds $ 10,683,311 Guaranteed Investment Contract 1,741,000 Total Investments with Fiscal Agents $ 12,424,311 Total Investments $ 119,193,655 The fair value of the position in the investment pools is the same as the value of the pool shares. Investment Pool Oversight State of California Local Agency Investment Fund LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's office audits the fund annually. Los Angeles County Investment Pool The investment section of the County Treasurer's office monitors the pool daily for compliance with the government code and investment guidelines. The Auditor - Controller's Office audits it quarterly for compliance. The Board of Supervisors receives an investment report monthly. San Bernardino County Investment Pool The County's Treasury Oversight Committee, which was established by the Board of Supervisors pursuant to the government code, reviews the annual investment policy and investment reports and oversees the portfolio's annual audit. Cash and Investments with Fiscal Agents The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds and certificates of participation. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds or certificates, may be invested in accordance with the ordinance, resolutions or 20 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) indentures specifying the types of investments its trustee or fiscal agents may make. Included in the monies held by trustees or fiscal agents are deposits with various institutions for the payment of long-term debt. Note 3: Receivables At June 30, the receivable accounts consisted of the following: Special Capital Internal General Revenue Projects Enterprise Service Agency Fund Funds Funds Funds Funds Funds Accounts $ 228,176 $ 343,784 $ - $ 2,442,439 $ 23,995 $ - Interest 334,474 262,874 13,258 188,982 28,560 232,942 Taxes 519,463 53,743 - - - - Special Assessments - 78,416 - - - 129,566 Deferred Special Assessments - 1,948,786 - - - - Totals $ 1,082,113 $ 2,687,603 $ 13,258 $ 2,631,421 $ 52,555 $ 362,508 Note 4: Interfund Receivables/Payables a. Due To/From General Fund $ 68,869 $ 14,725 Special Revenue Funds: Lighting and Landscape District - 95,327 Federal Grants - 29,151 Solid Waste - 47,391 Miscellaneous Grants - 29,584 Capital Projects Funds: Capital Improvement 29,584 - Enterprise Funds: Water Utility 115,892 - Sewer 1,918 85 Totals $ 216,263 $ 216,263 21 City of Chino Hills Notes to Financial Statements (Continued) Note 4: Interfund Receivables/Payables (Continued) b. Advance To/From General Fund Special Revenue Funds: Lighting and Landscape District City Facilities Fee Parkland Fee Street Sweeping Enterprise Funds: Water Utility Sewer Utility Internal Service Fund: Equipment Maintenance Agency Fund: CFD No. 5 Totals Advance To $ 1,302,200 4,300,000 879,500 3,901,584 8,653,500 1,500,000 $ 20,536,784 Advance From $ 8,107,100 1,302,200 879,500 9,346,400 901,584 $ 20,536,784 Note 5: Property, Plant and Equipment Changes in the components of the General Fixed Assets Account Group for the year ended June 30, 2002 were as follows: 22 Balance at Balance at July 1, 2001 Additions Deletions June 30, 2002 Land $ 17,161,568 $ 356,848 $ 151,200 $ 17,367,216 Buildings 10,010,156 1,615,818 4,686,313 6,939,661 Structures other than buildings 5,537,642 508,291 304,655 5,741,278 Equipment 983,955 137,741 318,828 802,868 Pipeline in service - 217,375 - 217,375 Total $ 33,693,321 $ 2,836,073 $5,460,996 $ 31,068,398 22 City of Chino Hills Notes to Financial Statements (Continued) Note 5: Property, Plant and Equipment (Continued) A summary of changes in the Enterprise Fund property, plant and equipment for the year ended June 30, 2002 were as follows: Land Easements Utility Plant in Service Pipeline in Service Meters Buildings and Improvements Equipment Construction -in -Progress Total Balance at July 1, 2001 Adjustments $ 3,068,883 $ - 537,940 - 19,956,903 - 98,095,588 3,463,742 1,229,665 - Balance at Additions Deletions June 30, 2002 $ - $ - $ 3,068,883 537,940 3,352 19,953,551 4,204,334 2,272 105,761,392 89,179 - 1,318,844 765,372 - 531,885 - 1,297,257 508,703 - 38,781 202,996 344,488 5,874,474 - 6,199,820 1,510,156 10,564,138 $ 130,037,528 $ 3,463,742 $ 11,063,999 $ 1,718,776 $ 142,846,493 Accumulated depreciation (26,134,238) (1,840,624) (3,146,198) (177,214) (30,943,845) Net $ 103,903,290 $ 1,623,118 $ 7,917,801 $ 1,541,562 $ 111,902,647 Due to a change in fixed assets policy, adjustments were made to add existing tract infrastructure for water and sewer transmission lines and remove laterals in the Sewer Fund. A summary of changes in the Enterprise Fund intangible asset for the year ended June 30, 2002 were as follows: Balance at Total Fixed Assets and Intangible Assets 23 Balance at June 30, 2002 $ 14,668,150 194,564 $ 14,862,714 (1,471,678) $ 13,391,036 $125,293,683 July 1, 2001 Additions Deletions Water Rights $ 14,668,150 $ - $ - Capacity Rights - 194,564 - Total $ 14,668,150 $ 194,564 $ - Accumulated Amortization (1,100,111) $ (371,567) $ - Net $ 13,568,039 Total Fixed Assets and Intangible Assets 23 Balance at June 30, 2002 $ 14,668,150 194,564 $ 14,862,714 (1,471,678) $ 13,391,036 $125,293,683 City of Chino Hills Notes to Financial Statements (Continued) Note 5: Property, Plant and Equipment (Continued) A summary of changes in the Internal Service Fund property, plant and equipment for the year ended June 30, 2002 were as follows: Balance at Balance at July 1, 2001 Adjustments Additions Deletions June 30, 2002 Vehicles $ 1,936,440 $ - $ 289,139 $ - $ 2,225,579 Equipment 854,625 (3,498) - 453,770 397,357 Construction -in -progress 3,712 - - - 3,712 Total $ 2,794,777 $ (3,498) $ 289,139 $ 453,770 $ 2,626,648 Accumulated depreciation (2,178,453) - (210,503) (325,519) 2,063,437 Net $ 616,324 $ (3,498) $ 78,636 $ 128,251 $ 563,211 Adjustments were made due to a change in fixed assets policy. Note 6: Property Taxes Property taxes are attached as an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. Any unpaid amounts at the end of the fiscal year are recorded as accounts receivable. The County of San Bernardino bills and collects the property taxes and subsequently remits the amount due to the City of Chino Hills in installments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied. The City does not collect property taxes in advance, therefore no deferred revenue is shown on the financial statements. The County is permitted by State Law (Article XI II A of the California Constitution) to levy taxes at 1 % of full market value (at time of purchase) and can increase the property's value no more than 2% per year. In accordance with an agreement with the County, the City receives 4% of the 1 % levy. Note 7: Pension Plan Plan Description The City of Chino Hills contributes to the San Bernardino County Employees' Retirement Association (SBCERA), a cost-sharing multiple -employer public employee defined benefit pension plan. Although legally established as a single employer plan, the City of Chino Hills, the City of Big Bear Lake, the County Supervisors Association of California and the South Coast Air Quality Management District were later included along with the County of San Bernardino (the "County") and are collectively referred to as the "Participating Members." Substantially all employees of the Participating Members are covered by the plan. SBCERA provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. SBCERA acts as a common investment and administrative agent for the Participating Members. Benefit provisions and all other requirements are established by the California County Employees' Retirement Act of 1937. Copies of SBCERA's annual financial report may be obtained from their executive office: 348 West Hospitality Lane, Third Floor, San Bernardino, CA 92415-0014. 24 City of Chino Hills Notes to Financial Statements (Continued) Note 7: Pension Plan (Continued) Funding Policy The contribution requirements of plan members and the City are established and may be amended by SBCERA. Employees are required to contribute a percentage of their annual compensation to the Plan based on the member's age at entry into the Plan. The City pays the employee's contribution up to 7% of their salary. The City also contributes an amount, based on actuarial assumptions that, together with employee contributions, is intended to provide sufficient reserves for payment of all prospective benefits to members. Employer rates are as follows: Category General Members Required Contributions Member Rates as a Percentage of Covered Payroll 8.86% For fiscal year 2001-2002, the City's annual pension cost of $1,043,459 for SBCERA was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2001 actuarial valuation using the Entry Age Normal Actuarial Cost Method, which is an accrued benefit method. The actuarial assumptions included (a) 8.16% investment rate of return compounded annually, (b) projected salary increases of 4.50% a year compounded annually, attributable to inflation, and (c) merit and longevity increase from 0.526% to 7.045% per year. THREE-YEAR TREND INFORMATION FOR SBCERA (Amount in Thousands) Percentage of Required Required Contributions Fiscal Year Contributions Contributed 6/30/00 $ 783 100% 6/30/01 $ 957 100% 6/30/02 $1,043 100% Note 8: Liability, Property and Workers' Compensation Protection a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 89 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group -purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9 -member Executive Committee. 25 City of Chino Hills Notes to Financial Statements (Continued) Note 8: Liability, Property and Workers' Compensation Protection (Continued) b. Self -Insurance Programs of the Authority General Liability - Each member government pays a primary deposit to cover estimated losses for fiscal year 2001-2002. Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the member; costs from $20,001 to $500,000 are pooled based on a member's share of costs under $20,000; costs from $500,001 to $5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers' Compensation - The City also participates in the workers' compensation pool administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City of Chino Hills is charged for the first $50,000 of each claim. Costs are pooled above that level to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its retention level. Costs between $100,001 and $500,000 per claim are pooled based on payroll. Costs in excess of $500,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage to statutory limits. c. Purchased Insurance Propertv Insurance - The City of Chino Hills participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City of Chino Hills property is currently insured according to a schedule of covered property submitted by the City of Chino Hills to the Authority. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Earthquake and Flood Insurance - The City of Chino Hills purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. There is a deductible of 5% of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Fidelity Bonds - The City of Chino Hills purchases blanket fidelity bond coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. d. Adequacy of Protection During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 26 City of Chino Hills Notes to Financial Statements (Continued) Note 8: Liability, Property and Workers' Compensation Protection (Continued) The following is a summary of the changes in the claims liability over the past two fiscal years: Claims payable, June 30, 2000 $ 491,235 Payments 122,809 Claims payable, June 30, 2001 $ 368,426 Payments 122,809 Claims payable, June 30, 2002 $ 245,617 Note 9: Changes in Long -Term Debt Governmental Funds The following is a summary of changes in the General Long -Term Debt Account Group for the year ended June 30, 2002: The adjustment of $383,689 relates to the write off of the Lennar Agreement for Parcel 1, 4, and 5. The adjustment of $25,508 relates to the reduction of principal by actual costs incurred by the City for roof repairs. Long-term debt repayments per financial statements $ 2,138,069 Long-term debt payments made by Assessment District Agency Funds. Repayment is made by giving a building permit fee credit against assessments previously paid to the Assessment District Funds. 820,822 Total Deletions per Changes in Long -Term Debt Schedule $ 2,958,891 Compensated Absences The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. This liability will be paid in future years from future resources. $ 374 523 27 Balance at Balance at July 1, 2001 Adjustments Additions Deletions June 30, 2002 Compensated Absences $ 301,796 $ - $ 72,727 $ - $ 374,523 Advances from Developers 890,550 - - - 890,550 Development Fee Program Obligations 45,889,866 (383,689) 603,118 2,705,759 43,403,536 Claim Payable (Note 10) 368,426 - 122,809 245,617 Capital Lease Obligations 242,261 - - 45,557 196,704 Equestrian Center Lease 21 - 1 20 CVIFD Note Payable 220,543 (25,508) 84,765 110,270 Totals $ 47,913,463 $ (409,197) $ 675,845 $ 2,958,891 $ 45,221,220 The adjustment of $383,689 relates to the write off of the Lennar Agreement for Parcel 1, 4, and 5. The adjustment of $25,508 relates to the reduction of principal by actual costs incurred by the City for roof repairs. Long-term debt repayments per financial statements $ 2,138,069 Long-term debt payments made by Assessment District Agency Funds. Repayment is made by giving a building permit fee credit against assessments previously paid to the Assessment District Funds. 820,822 Total Deletions per Changes in Long -Term Debt Schedule $ 2,958,891 Compensated Absences The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. This liability will be paid in future years from future resources. $ 374 523 27 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) Advances from Developers Advances from developers included in the General Long -Term Debt Account Group represent monies owed to developers for development fees collected in advance. The City will repay these developers by allowing them to use the $2,700 credit per unit against their development fees as they obtain their building permit releases. There is no fixed repayment schedule. $ 890,550 Development Fee Program Obligations The City has executed many agreements with outside developers requiring developers to provide funding up front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers (either as credits against fees owed or cash reimbursements if not fully credited) for their costs. A liability has been recorded for the project costs incurred to date, including estimated construction -in -progress and estimated interest payable related to one of the projects. There is no fixed repayment schedule. Claim Payable This liability represents a settlement agreement with Industry Urban Development Agency related to the acquisition of land and rights of way used for what is now Chino Hills Parkway. This liability will be repaid in ten (10) equal installments of $122,809 payable on January 15 of each year, commencing January 15, 1995, plus interest at the rate in effect pursuant to Section 1268.350 of the Code of Civil Procedure. The debt service payments to maturity are as follows: Year 2003 2004 Subtotal Less: Interest $43,403 536 L__245 ,617 Amount $ 131,992 125,680 $ 257,672 12,055 Total Principal $ 245,617 Capital Lease Obligations The City entered into lease purchase agreements throughout fiscal year 2000-2001 for ten copiers. $ 196,704 28 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) The debt service payments to maturity are as follows: Year Amount 2003 $ 69,773 2004 69,773 2005 69,773 2006 25,983 Subtotal $ 235,302 Less: Interest 38,598 Total Principal $ 196,704 Equestrian Center Lease On December 30, 1996, the City entered into a lease with the McCoy Equestrian Center trust to provide property for the equestrian center. The lease is for a period of 25 years for $1 per year with options to renew on an annual basis. $ 20 Chino Valley Independent Fire District Note Payable On December 10, 1998, the City purchased property for $1,350,000 from the CVIFD by making a down payment of $450,000 and issuing a promissory note for $900,000. Payments on the note will be in four equal annual installments of $225,000 commencing December 10, 1999. Each payment required on the note will be reduced by the amount of certain improvements the City makes to the property. Of the original $900,000 note, $70,830 is to be repaid by the Sewer Fund, $388,080 is to be repaid by the Water Fund, and $441,090 is to be repaid by governmental funds. &_11-%270 270 Proprietary Funds The following is a summary of changes in Enterprise Fund debt for the year ended June 30, 2002: Advances for Construction Capital Lease Obligations Development Program Obligations Certificates of Participation CVIFD Note Payable Compensated Absences (Note 1) Advances From Other Funds Totals Balance at July 1, 2001 Adjustment $ 69,161 $ - $ 2,673 - 4,056,665 - 18,790,000 - 229,457 (26,540) 96,359 9,346,400 Additions 6,000 9,545,000 6,941 $ 32,590,715 $ (26,540) $ 9,557,941 Deferred Amount on Refunding (859,267) (50,795) (808,472) Unamortized Bond Discount (144,449) (75,711) (8,749) (211,411) Total Long -Term Debt $ 31,586,999 $ (26,540) $ 9,482,230 $ 1,583,456 $ 39,459,233 The adjustment of $26,540 relates to the reduction of principal by actual costs incurred by Cityfor roof repairs. 29 Balance at Deletions June 30, 2002 $ 19,172 $ 49,989 509 2,164 825,132 3,237,533 710,000 27,625,000 88,187 114,730 - 103,300 - 9,346,400 $ 1,643,000 $ 40,479,116 Deferred Amount on Refunding (859,267) (50,795) (808,472) Unamortized Bond Discount (144,449) (75,711) (8,749) (211,411) Total Long -Term Debt $ 31,586,999 $ (26,540) $ 9,482,230 $ 1,583,456 $ 39,459,233 The adjustment of $26,540 relates to the reduction of principal by actual costs incurred by Cityfor roof repairs. 29 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) Capital Lease Obligations The City entered into a lease purchase agreement for a copier. The debt service payments to maturity are as follows: Year 2003 2004 2005 2006 Subtotal Less: Interest Total Principal Certificates of Participation On May 1, 1996 the City issued $21,645,000 in Certificates of Participation. The certificates consist of serial certificates maturing in principal amounts of $420,000 to $1,440,000 beginning June 1997 through June 2015 with interest rates ranging from 4.65% to 7.0% and term certificates of $4,440,000 maturing on June 1, 2018 with an interest rate of 5.6%. The certificates were issued in order to advance refund $22.4 million of outstanding installment obligation due to the Inland Empire Public Facilities Corporation and Water Facilities Authority. There is no principal amount outstanding on the original debt at June 30, 2002. Amount $775 775 775 258 $ 2,583 419 $ 2,164 The annual requirements to amortize the Certificates of Participation outstanding, as of June 30, 2002, are as follows: all Long -Term Year Debt 2003 $1,751,395 2004 1,749,645 2005 1,755,395 2006 1,748,065 2007 1,753,085 Thereafter 19,045,905 Subtotal $ 27,803,490 Less: Interest 9,723,490 Total Principal $ 18,080,000 Deferred Amount on Refunding (808,472) Unamortized Bond Discount (135,910) Total $ 17,135,618 all City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) On June 1, 2002, the City issued $9,545,000 in Certificates of Participation. The Certificates consist of serial certificates maturing in principal amounts of $40,000 to $685,000 beginning June 1, 2003 through June 2028 with interest rates ranging from 1.9% to 5.125% and term certificates of $3,140,000 maturing on June 1, 2032 with an interest rate of 5.3%. The Certificates were issued for the acquisition, construction and installation of certain improvements to the City's water system. $ 9,545,000 The annual requirements to amortize the certificates of participation outstanding, as of June 30, 2002, are as follows: Total $ 9,469,499 Advances for Construction In the agreement for the acquisition of the Pomona Valley Water Company ("Pomona Valley"), the City agreed to assume responsibility for repayment of certain cash advances made to Pomona Valley by various developers and individuals under individual contracts for the construction of main extension pipeline and special facilities. The advances are to be repaid, without interest, based on a percentage of water revenues received from the main extension pipeline payable annually, and within 20 years of the origination of each individual advance with final payment on all advances by the year 2003. $ 49 989 Development Program Obligations The City has executed many agreements with outside developers requiring developers to provide funding up -front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers for their up -front funding. A liability has been recorded for the project costs incurred to date, including estimated construction -in -progress. $ 3 237,533 31 Long -Term Year Debt 2003 $ 516,517 2004 516,111 2005 510,341 2006 519,561 2007 513,361 Thereafter 18,276,029 Subtotal $ 20,851,920 Less: Interest 11,306,920 Total Principal $ 9,545,000 Unamortized Bond Discount 75,501 Total $ 9,469,499 Advances for Construction In the agreement for the acquisition of the Pomona Valley Water Company ("Pomona Valley"), the City agreed to assume responsibility for repayment of certain cash advances made to Pomona Valley by various developers and individuals under individual contracts for the construction of main extension pipeline and special facilities. The advances are to be repaid, without interest, based on a percentage of water revenues received from the main extension pipeline payable annually, and within 20 years of the origination of each individual advance with final payment on all advances by the year 2003. $ 49 989 Development Program Obligations The City has executed many agreements with outside developers requiring developers to provide funding up -front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers for their up -front funding. A liability has been recorded for the project costs incurred to date, including estimated construction -in -progress. $ 3 237,533 31 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) Chino Valley Independent Fire District Note Payable See note on governmental funds above. &-11493G Compensated Absences The City's policies relating compensated absences are described in Note 1 of the Notes to Financial Statements. $ 103,301 Advances From Other Funds During the prior fiscal years, $2,659,000 and $1,500,000 were advanced from the Sewer Utility Fund and Equipment Maintenance Fund respectively. During the fiscal year 2000-2001 another $4,187,400 and $1,000,000 were advanced from the Sewer Utility Fund and Water Utility Fund, respectively. $ 9 346 400 Note 10: Contingencies a. Litigation The City is involved in several pending lawsuits of a nature common to many similar jurisdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial statements of the City. b. Voter Initiatives The California Supreme Court issued an opinion in December 1995 relating to the validity of Proposition 62 which was passed by the voters in 1986 (the Guardino case). This case could potentially affect the City with respect to the monies the City received and will receive from the County of San Bernardino pursuant to the Measure I voter -approved initiative, and the monies the City has received and will receive from its business license fees and from its property transfer tax. The City cannot further assess its potential liabilities at this time until additional opinions are issued by the State of California courts. Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City's ability to finance the services for which the taxes, assessments, and fees were imposed may be significantly impaired. The taxes, fees, and assessments that are subject to the provisions of Proposition 218 that the City currently imposes for its own benefit or as an agent for a special district, or receives from other governmental agencies potentially include the Measure I taxes, business license fees, community facilities districts, special taxes, landscape and lighting district assessments, street sweeping assessments, water utility fees, sewer utility fees, and refuse disposal fees. Certain language in the initiative is unclear as to the scope and impact of the proposition. Future court rulings or state legislation may clarify these issues. At this time it is uncertain how Proposition 218 will affect the City's ability to maintain or increase the revenue it receives from taxes, assessments and fees. 32 City of Chino Hill Notes to Financial Statements (Continued) Note 10: Contingencies (Continued) 3. A general plan initiative was passed by City residents in November 1999, which removed the City Council's ability to increase residential density zoning. An increase in residential zoning density would require a majority voter approval. Current zoning on a significant amount of developable residential parcels in the City is of a lower density of units per acre than the density desired by residential developers. This change could significantly slow down development in the City due to the voter approval requirement. Overhead revenue from development is currently the General Fund's largest revenue source, therefore, a decrease in the amount of development could have a significant fiscal impact on the General Fund. Note 11: Assessment District and Community Facilities District Bond Issues Excluded from the General Long -Term Debt Account Group are special assessment and special tax bonds related to various special assessment districts and community facilities districts included within the City. The City acts as an agent for the property owners benefited by the projects financed from the bond proceeds in collecting the assessments and taxes, forwarding the collections to bond holders and initiating foreclosure proceedings, if appropriate. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds and the City is not legally obligated for payment of the bonds. Included in the Agency fund is $33,112,806 of funds due to bondholders relating to these obligations. The debt outstanding at June 30, 2002 consists of the following individual issues: 1991 $5,310,000 Community Facilities District No. 2, Special Tax Bonds, Series "A", due in annual installments of $55,000 to $615,000 through September 1, 2011; interest ranging from 5.50% to 7.65%. $4,060,000 2000 $13,040,000 Community Facilities District No. 10, Special Tax Bonds, serial bonds due in annual installments of $35,000 to $405,000 through September 1, 2016, $2,040,000 term bonds due September 1, 2020 and $8,495,000 term bonds due September 1, 2030; interest ranging from 5.4% to 6.95%. 13,040,000 1998 $14,860,000 Community Facilities District No. 9, Special Tax Bonds, due in annual installments of $55,000 to $270,000 through September 1, 2010 plus term bonds due September 1, 2022 and September 1, 2023; interest rates varying from 4.40% to 6.45%. 9,990,000 1993 $9,460,000 Community Facilities District No. 1, Special Tax Refunding Bonds due in annual installments of $10,000 to $975,000 through September 1, 2011; interest ranging from 5.3% to 6.25%. 7,030,000 1993 $2,880,000 Community Facilities District No. 4, Special Tax Refunding Bonds due in annual installments of $5,000 to $305,000 through September 1, 2011; interest ranging from 3.5% to 5.9%. 2,175,000 1993 $2,090,000 Community Facilities District No. 5, Special Tax Refunding Bonds due in annual installments of $50,000 to $230,000 through September 1, 2011; interest ranging from 5.20% to 6.25%. 1,600,000 33 City of Chino Hills Notes to Financial Statements (Continued) Note 11: Assessment District and Community Facilities District Bond Issues (Continued) 1993 $2,980,000 Community Facilities District No. 8, Special Tax Refunding Bonds due in annual installments of $10,000 to $320,000 through September 1, 2011; interest ranging from 3.5% to 5.9%. $ 2,255,000 1994 $7,265,000 Reassessment District of 1994, Limited Obligation Bonds due in annual installments of $380,000 to $420,000 through September 2, 2008; interest ranging from 5.5% to 7.5%. 2,510,000 1995 $26,440,000 Reassessment District of 1995, Limited Obligation Bonds due in annual installments of $120,000 to $975,000 through September 2, 2021; interest ranging from 4.9% to 7.2%. 13,985,000 Assessment District No. 80-1 The County of San Bernardino, prior to the City's incorporation in 1991, formed Assessment District No. 80-1. The County recently informed the City of the existence of this District and pursuant to the directive of the Local Agency Formation Commission, the City should have assumed the responsibility of the District upon its incorporation. The County of San Bernardino is currently holding all funds related to the District. The City is in the process of assuming the administration duties of the District and will be requesting that the County turn over all funds related to the District to the City. Bonds issued for the District are $430,285 1980 Assessment District No. 80-1 serial bonds due in annual installments of $9,000 to $24,000 through July 2, 2021; interest rate on the bonds is 5%. The balance outstanding as of June 30, 2002 is $262,000. Note 12: Joint Venture a. Water Facility Authority On February 19, 1980, the Water Facilities Authority (Authority) was created under a joint exercise of powers agreement between the CSA 70 Zone CH (now part of the City of Chino Hills) and other local entities. It was formed for the acquisition and construction of facilities directly benefiting the participants by supplying water to the inhabitants within the boundaries of its members. Thus, each participant has an ongoing financial interest in the Authority. The governing Board of Directors consists of one member appointed from each participating agency and has approval of all budget and finance activities. The City's investment in the Authority has been recorded under the equity method of accounting and is shown as an investment in joint venture in the Water Enterprise Fund. On September 30, 1997, the Authority issued $24,455,000 in 1997 Refunding Certificates of Participation (COPs) for the purpose of refunding $25,820,000 of then outstanding 1986 COPs. The 1997 Refunding COPs carry interest rates from 4% to 5.3% and will be repaid in various principal increments with the final payment due on October 1, 2015. The refunding 1986 COPs carried interest rates from 6.4% to 6.75% and also were due in various principal increments with the final payment due on October 1, 2015. Each participant in the joint venture has pledged gross revenues from its respective Enterprise Fund and has agreed to restrictive covenants that establish rates and charges for each respective water enterprise fund at levels sufficient to maintain net revenues equal to at least 1.25 times the aggregate amount of each respective party's installment payments to the Authority as well as any parity debt which shall become due and payable within the 34 City of Chino Hills Notes to Financial Statements (Continued) Note 12: Joint Venture (Continued) succeeding twelve months. Each City has an ongoing financial responsibility as each has assumed a portion of the Authority's debt. During 1995-96, the City issued Certificates of Participation to advance refund the City's portion of this debt (see Note 11). The City's investment in the Authority at June 30, 2002 is $4,133,032. Audited financial information of the Authority for the fiscal year ended June 30, 2002 is summarized as follows: Total assets $ 41,285,272 Total liabilities 23,334,742 Total fund equity $ 17,950,530 Operating revenues $ 13,425,864 Operating expenses 14,398,615 Non-operating revenue (net) 44,801 Net Loss $ (927,950) Property, plant and equipment (net) $ 31,578,720 Net working capital $ 1,932,616 Capital contributions $ 22,472,506 The participants and their audited financial contributions through June 30, 2002 were as follows: City of Chino Hills Monte Vista Water District City of Chino City of Ontario City of Upland Non -Participants Total Amount Percent $ 5,174,197 23.0 % 3,484,578 15.5 3,099,788 13.8 6,602,147 29.4 4,004,397 17.8 107,399 0.5 $ 22,472,506 100.0 % Financial statements of the Authority can be obtained from the offices of Rogers, Anderson, Malody & Scott, LLP, Vanir Tower, 290 North "D" Street, Suite 300, San Bernardino, CA 92401. b. Chino Basin Desalter Authority On January 15, 2002, the Chino Basin Desalter Authority (Authority) was created under a joint exercise of powers agreement between the City of Chino Hills and other neighboring government agencies. This agreement was formed to successfully manage the groundwater resources in the Chino Basin. The governing Board of Director consists of one representative appointed from each participating agencies and has the power and responsibility to adopt budgets, operating plans and finance activities to further the purpose of the Authority. As of June 30, 2002, the City does not have an investment in the Authority. 35 City of Chino Hills Notes to Financial Statements (Continued) Note 13: Lease Payments Receivable Leases include certain water improvements, facilities, capacity rights and real and related personal property to the City of Chino and the Monte Vista Water District. The lease provides that, upon satisfaction of the terms of the agreement, legal title to the facilities will transfer to the lessees. The following is a schedule of minimum lease payments receivable by years as of June 30,2002: Year Ending June 30, 2003 $ 272,229 Minimum Lease Payments $ 272,229 Less Unearned Interest 14,712 Lease Receivable $ 257,517 Note 14: Contributed Capital Enterprise Funds Enterprise Funds contributed capital is the portion of equity derived from pipeline constructed and serviced by developers and donated to the City. Such equity also includes connection fees received from developers and customers to join new or extend existing water systems, as well as proceeds from special assessment bonds issued to finance utility plant in service. The following is a summary of the changes in contributed capital: Balance at Balance at July 1, 2001 Additions Deletions June 30, 2002 $ 97,765,000 $ - $ 1,893,468 $ 95,871,532 Internal Service Funds The Internal Service Funds contributed capital consists of cash and fixed assets donated from other funds and the General Fixed Assets Account Group. The following is a summary of the changes in contributed capital: Balance at July 1, 2001 $ 2,477,165 Additions 36 Deletions $ 128,053 Balance at June 30, 2002 $ 2,349,112 City of Chino Hills Notes to Financial Statements (Continued) Note 15: Fund Equity a. Reserves and Designations Fund balance reserves and designations are as follows: Reserved Non -Current portion of assessments receivable Encumbrances Acquisition of facilities Advances to other funds Total Reserved Designated Structural replacement Cash Flow Emergencies and contingencies Equipment Special projects Billing settlement Donation Total Designated Special General Revenue Capital Projects $ - $ 1,948,786 $ - 202,760 39,640 8,386,740 - 1,457,293 - 1,302,200 5,179,500 - $ 1,504,960 $ 8,625,219 $ 8,386,740 $ - $ 4,282,412 $ - 3,225,244 3,334,205 - 13,155,309 - - 220,000 - - 200,242 - - - 8,477 - 1,000 - - $16,801,795 $ 7,625,094 $ - b. Restatement of Fund Equity Fund equity has been restated as follows: Special Revenue Fund: Gas Tax Fund Adjustment of gas tax revenue in accordance with the State Controller Office Solid Waste Fund Adjustment for prior year billing settlement Enterprise Funds: Water Utility Fund Adjustment for changes in fixed assets capitalization threshold 37 $ (119,940) $ (78) $ (16,295) City of Chino Hills Notes to Financial Statements (Continued) Note 15: Fund Equity (Continued) Sewer Utility Fund Adjustment for changes in fixed assets capitalization threshold $ (13,619) Adjustment for an overbilling of prior yearexpenses 172,372 Total Sewer Utility Fund $ 158,753 Internal Service Funds: Equipment Maintenance Fund Adjustment for changes in fixed assets capitalization threshold $ (3,498) Data Processing Fund Adjustment for changes in fixed assets capitalization threshold $ (128,250) Restatement of Contributed Capital due to Change in fixed assets capitalization threshold 28,650 Total Data Processing Fund $ (99,600) Note 16: Segment Information Water Utility Sewer Utility Total Operating revenues $ 12,494,288 $ 4,064,258 $ 16,558,546 Depreciation and amortization 2,618,339 919,682 3,538,021 Operating income (loss) (438,009) 412,761 (25,248) Net income (loss) 6,807,934 1,495,001 8,302,935 Fixed asset additions 12,167,214 151,182 12,318,396 Fixed asset deletions 1,550,456 168,320 1,718,776 Bonds and note payable 29,989,661 17,708 30,007,369 Net working capital 21,855,875 7,574,377 29,430,252 Total assets 131,460,099 44,282,774 175,742,873 Total equity 90,039,830 43,410,188 133,450,018 Note 17: Commitments The City has no significant operating leases outstanding. It has ongoing agreements with developers in which the City will be required to reimburse the developers for the costs of infrastructure built. See Note 11 for additional information. Note 18: New Pronouncement In June 1999 the Governmental Accounting Standards Board adopted Statement No. 34. This statement provides for substantial changes in the financial reporting model. Significant areas of change are: Governmental funds will be reported on the full accrual basis of accounting in the government -wide statements. 38 City of Chino Hills Notes to Financial Statements (Continued) Note 18: New Pronouncement (Continued) General governmental infrastructure, which was not reported in the past, will be presented as part of capital assets. All capital assets will be depreciated unless an allowed alternate method of reporting the maintenance and replacement costs is selected. The assets and related depreciation expense will be reported with governmental activities in the government - wide financial statements. Management's discussion and analysis of the financial statements will be presented. The statement of activities will show the net expense or revenue of the government's individual functions. Revenues, which relate to particular activities, will be grouped with those functions, arriving at a net expense or revenue for each function. General revenues will be reported after the net (expense)/revenue for the various functions. The fund level statements will be reported on the modified accrual basis of accounting for governmental funds and the full accrual basis for proprietary funds. The statements will have a column for each major fund, with a single column for the aggregated totals of the nonmajor funds. The implementation date for this pronouncement is based on the government's revenues for fiscal year 1998-99. The dates are as follows: Entities with revenues of $100,000,000 or more Entities with revenues from $10,000,000 to $99,999,999 Entities with revenues less than $10,000,000 Fiscal year 2001-2002 Fiscal year 2002-2003 Fiscal year 2003-2004 THIS PAGE INTENTIONALLY LEFT BLANK m GENERAL FUND The General Fund accounts for all financial resources and transactions except those required to be accounted for in other funds. 41 CITY OF CHINO HILLS Schedule 1 BALANCE SHEET GENERALFUND JUNE 30, 2002 A S S E T S Cash and investments Receivables (Net of allowances): Accounts Interest Taxes Due from other funds Due from other agencies Due from other governments Advances to other funds Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Salaries and benefits payable Due to other funds Advances from other funds Compensated absences payable Total Liabilities Fund Balances: Reserves: Encumbrances Advances to other funds Unreserved: Designated for cash flow Designated for emergencies and contingencies Designated for equipment Designated for special projects Designated for donations Undesignated Total Fund Balances Total Liabilities and Fund Balances 42 2002 2001 $ 25,063,734 $ 26,923,780 228,176 23,019 334,474 561,525 519,463 460,454 68,869 494,104 268,097 88,622 484,119 400,761 1,302,200 1,302,200 $ 28,269,132 $ 30,254,465 $ 1,482,083 $ 936,389 339,469 264,339 14,725 7,626 8,107,100 5,740,622 19,000 19,000 9,962,377 6,967,976 202,760 213,323 1,302,200 1,302,200 3,225,244 3,225,244 13,155,309 18,221,459 220,000 - 200,242 202,704 1,000 16,000 - 105,559 18,306,755 23,286,489 $ 28,269,132 $ 30,254,465 CITY OF CHINO HILLS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 2 Other Financing Sources (Uses): Proceeds of capital leases 2002 2001 Revenues: 123,236 2,038,687 Taxes $ 10,634,417 $ 9,680,056 Licenses and permits 1,855,446 2,771,914 Use of money and property 1,653,220 2,872,736 Charges for services 5,151,686 4,811,894 Fines and forfeitures 291,808 267,063 Other 937,959 1,647,346 Total Revenues 20,524,536 22,051,009 Expenditures: 23,286,489 19,344,569 Current: - 400 General government 4,574,435 4,727,368 Culture and leisure 2,265,848 2,167,285 Community development 3,615,385 3,801,546 Public safety 4,183,232 3,950,990 Public works 2,088,422 1,879,923 Debt service: Principal 243,065 124,932 Interest and fiscal charges 328,955 354,656 Total Expenditures 17,299,342 17,006,700 Excess of Revenues over (under) Expenditures 3,225,194 5,044,309 Other Financing Sources (Uses): Proceeds of capital leases - 268,279 Operating transfers in 123,236 2,038,687 Operating transfers out (8,328,164) (3,409,755) Total Other Financing Sources (Uses) (8,204,928) (1,102,789) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses (4,979,734) 3,941,520 Fund Balances: Beginning of Fiscal Year 23,286,489 19,344,569 Residual Equity Transfers - 400 End of Fiscal Year $ 18,306,755 $ 23,286,489 43 CITY OF CHINO HILLS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Taxes Licenses and permits Use of money and property Charges for services Fines and forfeitures Other Total Revenues Expenditures: General Government: City council City manager City clerk City attorney Finance Personnel Risk management Non -departmental Total General Government Cultural and Leisure: Recreation Recreation fee program Community services administration Total Cultural and Leisure Community Development: 31I111164 20,983,900 20,524,536 (459,364) 144,100 977,500 773,600 475,000 1,226,700 217,100 846,500 793,400 5,453,900 582,000 1,131,200 886,200 2,599,400 143,541 640,113 572,956 385,520 1,187,507 189,795 698,565 765,967 4,583,964 494,284 988,681 796,787 2,279,752 559 337,387 200,644 89,480 39,193 27,305 147,935 27,433 869,936 87,716 142,519 89,413 319,648 Schedule 3 Page 1 of 2 2001 Actual $ 9,680,056 2,771,914 2,872,736 4,811,894 267,063 1,647,346 22,051,009 103,852 726,530 614,180 608,460 1,138,682 160,925 737,923 684,663 4,775,215 369,837 963,074 717,771 2,050,682 Community development 801,600 variance - 186,811 561,616 Favorable Budget Actual (Unfavorable) $ 9,823,600 $ 10,634,417 $ 810,817 2,669,700 1,855,446 (814,254) 1,028,800 1,653,220 624,420 5,012,900 5,151,686 138,786 224,700 291,808 67,108 2,224,200 937,959 (1,286,241) 20,983,900 20,524,536 (459,364) 144,100 977,500 773,600 475,000 1,226,700 217,100 846,500 793,400 5,453,900 582,000 1,131,200 886,200 2,599,400 143,541 640,113 572,956 385,520 1,187,507 189,795 698,565 765,967 4,583,964 494,284 988,681 796,787 2,279,752 559 337,387 200,644 89,480 39,193 27,305 147,935 27,433 869,936 87,716 142,519 89,413 319,648 Schedule 3 Page 1 of 2 2001 Actual $ 9,680,056 2,771,914 2,872,736 4,811,894 267,063 1,647,346 22,051,009 103,852 726,530 614,180 608,460 1,138,682 160,925 737,923 684,663 4,775,215 369,837 963,074 717,771 2,050,682 Community development 801,600 614,789 186,811 561,616 Building and safety 2,691,300 2,415,711 275,589 2,774,379 Planning 857,000 496,676 360,324 552,611 Economic development 88,700 56,914 31,786 68,811 Commercial economic development 892,700 31,941 860,759 57,027 Total Community Development 5,331,300 3,616,031 1,715,269 4,014,444 Public Safety: Emergency preparedness 12,400 9,294 3,106 7,268 Code enforcement 148,100 134,477 13,623 142,283 Law enforcement 3,897,600 3,888,471 9,129 3,656,013 Animal control 87,000 86,937 63 84,160 Household hazardous waste 113,700 81,694 32,006 61,458 Total Public Safety $ 4,258,800 $ 4,200,873 $ 57,927 $ 3,951,182 44 CITY OF CHINO HILLS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Public Works: General maintenance General park and landscape maintenance Storm drain facilities Street maintenance Capital Project administration Debt Service: Principal Interest and fiscal charges Total Debt service Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of capital leases Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year Residual Equity Transfers End of Fiscal Year 2002 2,456,000 2,249,462 206,538 Schedule 3 Page 2 of 2 Actual $ 409,709 419,841 36,117 679,088 404,157 1,948,912 231,600 243,065 variance - 124,932 340,500 Favorable Budget Actual (Unfavorable) $ 559,800 $ 520,014 $ 39,786 523,300 424,611 98,689 56,900 55,227 1,673 946,600 913,109 33,491 369,400 336,501 32,899 2,456,000 2,249,462 206,538 Schedule 3 Page 2 of 2 Actual $ 409,709 419,841 36,117 679,088 404,157 1,948,912 231,600 243,065 (11,465) 124,932 340,500 328,955 11,545 354,656 572,100 572,020 80 479,588 20,671,500 17,502,102 3,169,398 17,220,023 312,400 3,022,434 2,710,034 4,830,986 - - - 268,279 171,900 123,236 (48,664) 2,038,687 (19,809,400) (8,328,164) 11,481,236 (3,409,755) (19,637,500) (8,204,928) 11,432,572 (1,102,789) (19,325,100) (5,182,494) 14,142,606 3,728,197 - 202,760 202,760 213,323 (19,325,100) (4,979,734) 14,345,366 3,941,520 23,286,489 23,286,489 - 19,344,569 - - - 400 $ 3,961,389 $ 18,306,755 $ 14,345,366 $ 23,286,489 Gf.7 SPECIAL REVENUE FUNDS Lighting and Landscape District - To account for receipts and expenditures of money in benefit assessment district zones for operating expenditures, maintenance, and capital outlay for street lighting, landscaping, and parks located within the district. Sleepy Hollow Road Improvement - To account for receipts and expenditures of money for landscape and other maintenance in the area of the City formerly designated as County Service Area No. 19. Existing Infrastructure Fee - To account for receipts and expenditures of money in the facilities development program which provides for the reimbursement of expenditures to property owners who constructed the facilities in the program. City Facilities Fee - To account for receipts and expenditures of money in the facilities development program for civic facilities such as a civic center, fire stations and community centers. Traffic Facilities Fee - To account for receipts and expenditures of money in the facilities development program for traffic facilities such as streets, sidewalks, curbs and gutters. Storm Drain Facilities Fee - To account for receipts and expenditures of money in the facilities development program for storm drain facilities. Parkland Fee - To account for receipts and expenditures of money in the park development fee program which provides funds for the acquisition of land and construction of parks within the City and is financed from fees collected from the development of residential and commercial properties. Traffic Signal Fee - To account for the receipts and expenditures of money in the traffic signal fee program which provides funds for the installation of traffic signals within the City. Gas Tax - To account for receipts and expenditures of money apportioned under the State of California Streets and Highways Code Sections 2105, 2106 and 2107. Air Quality -To account for receipts and expenditures of money in the State and Federally mandated program to improve air quality within the South Coast Air Quality Management District. Federal Grants - To account for receipts and expenditures of money for certain federal grants received by the City. 46 Measure I - To account for receipts and expenditures of money in providing qualifying street maintenance activities in conformance with provisions of the voter approved Measure 12 cent sales tax levy. Solid Waste - To account for receipts and expenditures of money for the collection, transportation, and disposal, via contract, of solid waste materials. Street Sweeping - To account for receipts and expenditures of money in providing street sweeping services as financed through assessment fees collected from residential and commercial property owners. Frontline Policing - To account for the receipts and expenditures of money for the Frontline Policing Grant received from the State of California for qualifying police activities. Miscellaneous Grants - To account for receipts and expenditures of moneyfor various grants received from Local, State, and Federal agencies. 47 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2002 Cash and investments Receivables (net of allowances): Accounts receivable Interest Taxes Special assessments Deferred special assessments Due from other governments Due from developers Advance to other funds Total Assets Liabilities: Accounts payable Salaries and benefits payable Due to other funds Due to developers Advance from other funds Deferred revenue Total Liabilities Fund Balances: Reserved: Long term deferred special assessment receivable Acquisition of Facilities Advances to other funds Encumbrances Unreserved: Designated for: Structural replacement Cash flow Billing settlement Undesignated Total Fund Balances Total Liabilities and Fund Balances 48 Lighting and Landscape Schedule 4 Page 1 of 4 Sleepy Existing Hollow Road Infrastructure Improvement Fee $ 8,324,353 $ 43,093 $ 2,757,471 2,879 - - 79,608 391 30,345 74,728 159 - - - 1,948,786 - - 10,498 4,300,000 - - $ 12,781,568 $ 43,643 $ 4,747,100 $ 505,792 $ - $ - 18,026 - 95,327 - - - - 3,840,684 619,145 - 3,840,684 1,948,786 4,300,000 30,824 4,183,906 - - 3,334,205 - - 313,488 43,643 (1,042,370) 12,162,423 43,643 906,416 R 19 7R1 F;RA T, 4q 642 !9 4.747.100 Schedule 4 Page 2 of 4 City Traffic Storm Drain Parkland Traffic 1,715,269 Facilities Fee Facilities Fee Facilities Fee Fee Signal Fee Gas Tax $ 3,259,772 $ 4,361,349 $ 2,834,748 $ 2,516,066 $ 58,306 $ 2,915,336 $ 4,235,944 $ 2,307,582 $ 1,905,437 $ 57,758 $ 1,691,510 27,201 39,837 20,390 17,829 548 23,759 317,235 85,568 506,776 592,800 - - $ 3,259,772 $4,361,349 $ 2,834,748 $ 2,516,066 $ 58,306 $ 1,715,269 1,302,200 - - 879,500 - 1,302,200 - 879,500 - - 1,457,293 - - - - 500,279 4,361,349 2,834,748 1,636,566 58,306 1,715,269 1,957,572 4,361,349 2,834,748 1,636,566 58,306 1,715,269 $ 3,259,772 $ 4,361,349 $ 2,834,748 $ 2,516,066 $ 58,306 $ 1,715,269 49 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2002 Cash and investments Receivables (net of allowances): Accounts receivable Interest Taxes Special assessments Deferred special assessments Due from other governments Due from developers Advance to other funds Total Assets Liabilities: Accounts payable Salaries and benefits payable Due to other funds Due to developers Advance from other funds Deferred revenue Total Liabilities Fund Balances: Reserved: Long term deferred special assessment receivable Acquisition of Facilities Advances to other funds Encumbrances Unreserved: Designated for: Structural replacement Cash flow Billing settlement Undesignated Total Fund Balances Total Liabilities and Fund Balances 50 Schedule 4 Page 3 of 4 Air Federal Quality Grants Measure I $ 417,648 $ 10,740 $ 1,608,655 3,731 95 16,729 - - 53,743 19,100 29,151 - $ 440,479 $ 39,986 $ 1,679,127 $ 7,765 $ $ - 29,151 - - 10,835 - 7,765 39,986 - 8,816 - - 423,898 - 1,679,127 432,714 - 1,679,127 $ 440,479 $ 39,986 $ 1,679,127 Solid Street Frontline Waste Sweeping Policing Schedule 4 Page 4 of 4 Miscellaneous T O T A L S Grants 2002 2001 $ 357,635 $ 193,997 $ 66,654 $ 355,547 $ 27,249,360 $ 25,120,122 340,905 - - - 343,784 349,368 - 1,630 781 - 262,874 384,930 _ - 53,743 168,856 3,529 - - 78,416 75,131 _ _ - 1,948,786 1,806,857 - 152,091 200,342 253,709 - 1,512,877 1,204,419 - 879,500 - - 5,179,500 4,354,472 $ 698,540 $ 1,078,656 $ 67,435 $ 507,638 $ 36,829,682 $ 33,717,864 $ 642,672 $ 38,555 $ - $ - $ 1,194,784 $ 1,088,485 18,026 16,763 47,391 - - 29,584 201,453 608,562 _ - 3,840,684 3,285,220 - 2,181,700 2,181,700 478,054 488,889 602,808 690,063 38,555 - 507,638 7,925,536 7,783,538 51 - 1,948,786 1,806,857 _ _ _ - 1,457,293 1,109,757 - 879,500 - - 5,179,500 4,354,472 _ - - - 39,640 171,723 - 98,506 - - 4,282,412 5,510,305 _ - - - 3,334,205 3,334,204 8,477 - - - 8,477 8,555 - 62,095 67,435 - 12,653,833 9,638,453 8,477 1,040,101 67,435 - 28,904,146 25,934,326 $ 698,540 $ 1,078,656 $ 67,435 $ 507,638 $ 36,829,682 $ 33,717,864 51 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses Fund Balances: Beginning of Fiscal Year - as originally reported Restatement Beginning of Fiscal Year - as restated Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses Residual Equity Transfer End of Fiscal Year 6YA Schedule 5 Page 1 of 4 Lighting and Sleepy Existing Landscape Hollow Road Infrastructure District Improvement Fee (224,288) $ 5,112,760 $ 10,128 $ - 482,198 1,498 108,153 - 6,264,794 1,239,952 - - 6,834,910 11,626 6,372,947 - 329 - 6,030,042 - 1,618,216 - - 1,760,808 28,116 - - 50,900 - 1,810,239 - - 656,098 6,109,058 329 5,845,361 725,852 11,297 527,586 - - 603,118 1,395,632 - - (2,183,894) - (788,262) - 603,118 $(62,410) $ 11,297 $ 1,130,704 $ 12,224,833 $ 32,346 $ (224,288) (62,410) 11,297 1,130,704 $ 12,162,423 $ 43,643 $ 906,416 Schedule 5 Page 2 of 4 City Traffic Storm Drain Parkland Traffic - Facilities Fee Facilities Fee Facilities Fee Fee Signal Fee Gas Tax 33,865 - - - - 108,154 170,246 78,436 58,068 1,904 105,314 - - - - - 1,273,953 929,527 124,323 722,821 1,092,110 15,570 - - - - 150 - - 1,037,681 294,569 801,257 1,150,328 17,474 1,379,267 69,600 221,500 - 96,000 4,500 - - - - - - 8,549 33,865 - - - - 52,205 - 35,191 - - 155,670 221,500 - 131,191 4,500 8,549 882,011 73,069 801,257 1,019,137 12,974 1,370,718 (333,077) (151,586) (5,757) (115) (2,096,756) (333,077) - (151,586) (5,757) (115) (2,096,756) $ 548,934 $ 73,069 $ 649,671 $ 1,013,380 $ 12,859 $ (726,038) $ 1,408,638 $ 4,288,280 $ 2,185,077 $ 623,186 $ 45,447 $ 2,561,247 - - - - - (119,940) 1,408,638 4,288,280 2,185,077 623,186 45,447 2,441,307 548,934 73,069 649,671 1,013,380 12,859 (726,038) $ 1,957,572 $ 4,361,349 $ 2,834,748 $ 1,636,566 $ 58,306 $ 1,715,269 53 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses Fund Balances: Beginning of Fiscal Year - as originally reported Restatement Beginning of Fiscal Year - as restated Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses Residual Equity Transfer End of Fiscal Year 54 Schedule 5 Page 3 of 4 Air Federal Quality Grants Measure 1 14,858 883 66,073 76,416 33,468 802,530 91,274 34,351 868,603 12,332 - 7,584 22,019 - / ,Ju`T 83,690 - 868,603 (298) - (559,132) (298) - (559,132) $ 83,392 $ - $ 309,471 $ 349,322 $ - $ 1,369,656 349,322 - 1,369,656 83,392 - 309,471 $ 432,714 $ - $ 1,679,127 Schedule 5 Page 4 of 4 Solid Street Frontline Miscellaneous T O T A L S Waste Sweeping Policing Grant 2002 2001 - $ - $ 197,729 $ - $ - $ 5,320,617 $ 5,313,875 - 40,454 4,017 - 1,240,256 1,849,763 - - 138,414 568,799 2,893,580 2,474,258 - - - - 9,149,145 8,412,446 2,918,222 - - - 2,918,222 3,340,452 - - - - 1,240,102 1,325,562 2,918,222 238,183 142,431 568,799 22,761,922 22,716,356 - - - - 329 96 - - 151,100 - 163,432 159,336 2,918,222 184,005 - - 11,142,085 11,856,673 - - - - 1,760,808 2,871,416 - - - - 66,268 37,205 - - - - 1,895,004 3,633,393 - - - - 743,494 805,862 2,918,222 184,005 151,100 - 15,771,420 19,363,981 - 54,178 (8,669) 568,799 6,990,502 3,352,375 603,118 1,130,673 1,395,632 1,313,645 - - (568,799) (5,899,414) (3,638,597) (568,799) (3,900,664) (1,194,279) $ - $ 54,178 $ (8,669) $ - $ 3,089,838 $ 2,158,096 $ 8,555 $ 985,923 $ 76,104 $ - $ 25,934,326 $ 24,008,328 (78) - - - (120,018) (231,698) 8,477 985,923 76,104 - 25,814,308 23,776,630 - 54,178 (8,669) - 3,089,838 2,158,096 - - - - - (400) $ 8,477 $ 1,040,101 $ 67,435 $ - $ 28,904,146 $ 25,934,326 55 CITY OF CHINO HILLS Schedule 6 COMBINING SCHEDULE OF REVENUES, Page 1 of 12 EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 LIGHTING AND LANDSCAPE DISTRICT Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year F7 6,586,600 6,060,866 525,734 32,400 28,116 4,284 45,000 50,900 (5,900) b,bfd4,000 ti,1JU,bbz b14,116 186,000 695,028 509,028 1,432,600 1,395,632 (36,968) (3,599,100) (2,183,894) 1,415,206 (2,166,500) (788,262) 1,378,238 (1,980,500) (93,234) 1,887,266 30,824 30,824 $ (1,980,500) $ (62,410) $ 1,918,090 $ 12,224,833 $ 12,224,833 $ - I L,LL4,03J IL,LL4,633 - (1,980,500) (62,410) 1,918,090 $ 10,244,333 $ 12,162,423 $ 1,918,090 Variance - Favorable Budget Actual (Unfavorable) $ 5,082,800 $ 5,112,760 $ 29,960 545,300 482,198 (63,102) 1,221,900 1,239,952 18,052 6,850,000 6,834,910 (15,090) 6,586,600 6,060,866 525,734 32,400 28,116 4,284 45,000 50,900 (5,900) b,bfd4,000 ti,1JU,bbz b14,116 186,000 695,028 509,028 1,432,600 1,395,632 (36,968) (3,599,100) (2,183,894) 1,415,206 (2,166,500) (788,262) 1,378,238 (1,980,500) (93,234) 1,887,266 30,824 30,824 $ (1,980,500) $ (62,410) $ 1,918,090 $ 12,224,833 $ 12,224,833 $ - I L,LL4,03J IL,LL4,633 - (1,980,500) (62,410) 1,918,090 $ 10,244,333 $ 12,162,423 $ 1,918,090 Schedule 6 Page 2 of 12 SLEEPY HOLLOW ROAD IMPROVEMENT EXISTING INFRASTRUCTURE FEE Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 11,700 $ 10,128 $ (1,572) $ - $ - $ - 1,400 1,498 98 61,200 108,153 46,953 - - - 9,414,000 6,264,794 (3,149,206) (1,474) 9,475,200 (3,102,253) 6,372,947 13,100 11,626 500 329 171 - - - - - - 3,151,100 1,618,216 1,532,884 - - - 5,247,800 1,760,808 3,486,992 - - - 3,487,900 1,810,239 1,677,661 - - - 683,000 656,098 26,902 500 329 171 12,569,800 5,845,361 6,724,439 12,600 11,297 (1,303) (3,094,600) 527,586 3,622,186 - - - 2,500,000 603,118 1,896,882 - - - 2,500,000 603,118 1,896,882 12,600 11,297 (1,303) (594,600) 1,130,704 1,725,304 $ 12,600 $ 11,297 $ (1,303) $ (594,600) $ 1,130,704 $ 1,725,304 $ 32,346 $ 32,346 $ - $ (224,288) $ (224,288) $ - 32,346 32,346 - (224,288) (224,288) - 12,600 11,297 (1,303) (594,600) 1,130,704 1,725,304 $ 44,946 $ 43,643 $ (1,303) $ (818,888) $ 906,416 $ 1,725,304 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year - as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year 'f:3 CITY FACILITIES FEE Schedule 6 Page 3 of 12 Variance - Favorable Budget Actual (Unfavorable) 71,900 108,154 36,254 850,700 929,527 78,827 922,600 1,037,681 115,081 69,600 69,600 - 44,100 33,865 10,235 68,800 52,205 16,595 182,500 155,670 26,830 740,100 882,011 141,911 (463,500) (333,077) 130,423 (463,500) (333,077) 130,423 276,600 548,934 272,334 $ 276,600 $ 548,934 $ 272,334 $ 1,408,638 1,408,638 $ 1,408,638 I ,,+uo,uao 276,600 548,934 272,334 $ 1,685,238 $ 1,957,572 $ 272,334 TRAFFIC FACILITIES FEE Variance - Favorable Budget Actual (Unfavorable) 165,200 170,246 5,046 105,000 124,323 19,323 Schedule 6 Page 4 of 12 STORM DRAIN FACILITIES FEE Variance - Favorable Budget Actual (Unfavorable) 30,400 78,436 48,036 578,600 722,821 144,221 221,500 221,500 - - - - 48,700 73,069 24,369 (3,923,400) - 3,923,400 (3,923,400) - 3,923,400 (3,874,700) 73,069 3,947,769 $ (3,874,700) $ 73,069 $ 3,947,769 $ 4,288,280 $ 4,288,280 $ - 4,288,280 4,288,280 - (3,874,700) 73,069 3,947,769 $ 413,580 $ 4,361,349 $ 3,947,769 M 609,000 801,257 192,257 (489,200) (151,586) (337,614) (489,200) (151,586) (337,614) 119,800 649,671 (145,357) $ 119,800 $ 649,671 $ (145,357) $ 2,185,077 $ 2,185,077 $ 2,185,077 2,185,077 - 119,800 649,671 (145,357) $ 2,304,877 $ 2,834,748 $ (145,357) CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year PARKLAND FEE Schedule 6 Page 5of12 96,000 96,000 - 56,400 35,191 21,209 152,400 131,191 21,209 1,056,700 1,019,137 (37,563) (704,300) (5,757) 698,543 (704,300) (5,757) 698,543 352,400 1,013,380 660,980 $ 352,400 $ 1,013,380 $ 660,980 $ 623,186 $ 623,186 $ - 623,186 623,186 - 352,400 1,013,380 660,980 $ 975,586 $ 1,636,566 $ 660,980 Variance - Favorable Budget Actual (Unfavorable) 58,600 58,068 (532) 1,150,500 1,092,110 (58,390) - 150 150 1,209,100 1,150,328 (58,772) 96,000 96,000 - 56,400 35,191 21,209 152,400 131,191 21,209 1,056,700 1,019,137 (37,563) (704,300) (5,757) 698,543 (704,300) (5,757) 698,543 352,400 1,013,380 660,980 $ 352,400 $ 1,013,380 $ 660,980 $ 623,186 $ 623,186 $ - 623,186 623,186 - 352,400 1,013,380 660,980 $ 975,586 $ 1,636,566 $ 660,980 TRAFFIC SIGNAL FEE Variance - Favorable Budget Actual (Unfavorable) 2,700 1,904 (796) 15,570 15,570 4,500 4,500 4,500 4,500 - (1,800) 12,974 14,774 Budget Actual (5,300) (115) 5,185 (5,300) (115) 5,185 35,114 1,080,100 (7,100) 12,859 19,959 $ (7,100) $ 12,859 $ 19,959 $ 45,447 $ 45,447 $ - 45,447 45,447 - (7,100) 12,859 19,959 $ 38,347 $ 58,306 $ 19,959 61 Schedule 6 Page 6 of 12 GAS TAX 8,600 8,549 51 1,141,700 1,370,718 229,018 (3,542,100) (2,096,756) 1,445,344 (3,542,100) (2,096,756) 1,445,344 (2,400,400) (726,038) 1,674,362 $ (2,400,400) $ (726,038) $ 1,674,362 $ 2,561,247 $ 2,561,247 $ - - (119,940) (119,940) 2,561,247 2,441,307 (119,940) (2,400,400) (726,038) 1,674,362 $ 160,847 $ 1,715,269 $ 1,554,422 Variance - Favorable Budget Actual (Unfavorable) 70,200 105,314 35,114 1,080,100 1,273,953 193,853 1,150,300 1,379,267 228,967 8,600 8,549 51 1,141,700 1,370,718 229,018 (3,542,100) (2,096,756) 1,445,344 (3,542,100) (2,096,756) 1,445,344 (2,400,400) (726,038) 1,674,362 $ (2,400,400) $ (726,038) $ 1,674,362 $ 2,561,247 $ 2,561,247 $ - - (119,940) (119,940) 2,561,247 2,441,307 (119,940) (2,400,400) (726,038) 1,674,362 $ 160,847 $ 1,715,269 $ 1,554,422 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year 62 AIR QUALITY Schedule 6 Page 7 of 12 16,400 16,400 - 16,400 16,400 - 64,000 74,874 10,874 (156,600) (298) 156,302 (156,600) (298) 156,302 (92,600) 74,576 167,176 8,816 8,816 $ (92,600) $ 83,392 $ 175,992 $ 349,322 $ 349,322 $ - 34y, 3/- /_ Joy, 3LL - (92,600) 83,392 175,992 $ 256,722 $ 432,714 $ 175,992 Variance - Favorable Budget Actual (Unfavorable) 14,300 14,858 558 66,100 76,416 10,316 80,400 10,874 91,274 16,400 16,400 - 16,400 16,400 - 64,000 74,874 10,874 (156,600) (298) 156,302 (156,600) (298) 156,302 (92,600) 74,576 167,176 8,816 8,816 $ (92,600) $ 83,392 $ 175,992 $ 349,322 $ 349,322 $ - 34y, 3/- /_ Joy, 3LL - (92,600) 83,392 175,992 $ 256,722 $ 432,714 $ 175,992 FEDERAL GRANTS MEASURE 1 Variance - Favorable Budget Actual (Unfavorable) 1,200 883 (317) 611,600 33,468 (578,132) 612,800 34,351 (578,449) Schedule 6 Page 8 of 12 12,500 12,332 168 Variance - - - Favorable Budget Actual (Unfavorable) - 22,100 22,019 81 29,000 66,073 37,073 699,300 802,530 103,230 728,300 868,603 140,303 12,500 12,332 168 - - - 578,200 - 578,200 - - - 22,100 22,019 81 - - - 34,351 578,449 - 612,800 - - - - - 728,300 868,603 140,303 - - - (1,879,900) (559,132) 1,320,768 - - - (1,879,900) (559,132) 1,320,768 - - - (1,151,600) 309,471 1,461,071 $ - $ - $ - $ (1,151,600) $ 309,471 $ 1,461,071 $ - $ - $ - $ 1,369,656 $ 1,369,656 $ - - - - 1,369,656 1,369,656 - - - - (1,151,600) 309,471 1,461,071 218,056 $ 1,679,127 $ 1,461,071 63 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year 64 SOLID WASTE Schedule 6 Page 9 of 12 Variance - Favorable Budget Actual (Unfavorable) 3,012,700 2,918,222 (94,478) 3,012,700 2,918,222 (94,478) 3,012,700 2,918,222 94,478 3,012,700 2,918,222 94,478 $ 8,555 $ 8,555 $ - - (78) (78) 8,555 8,477 (78) o,oua y o"+i / y tiu) STREET SWEEPING Variance Favorable Budget Actual (Unfavorable) $ 181,200 $ 197,729 $ 16,529 45,000 40,454 (4,546) 210,300 184,005 26,295 15,900 54,178 38,278 15,900 54,178 38,278 $ 15,900 $ 54,178 $ 38,278 15,900 54,178 38,278 $ 1,001,823 $ 1,040,101 $ 38,278 65 Schedule 6 Page 10 of 12 FRONTLINE POLICING 199,400 151,100 48,300 199,400 151,100 48,300 (63,500) (8,669) 54,831 (63,500) (8,669) 54,831 $ (63,500) $ (8,669) $ 54,831 $ 76,104 $ 76,104 $ - 76,104 76,104 - (63,500) (8,669) 54,831 $ 12,604 $ 67,435 $ 54,831 Variance Favorable Budget Actual (Unfavorable) 5,100 4,017 (1,083) 130,800 138,414 7,614 135,900 6,531 142,431 199,400 151,100 48,300 199,400 151,100 48,300 (63,500) (8,669) 54,831 (63,500) (8,669) 54,831 $ (63,500) $ (8,669) $ 54,831 $ 76,104 $ 76,104 $ - 76,104 76,104 - (63,500) (8,669) 54,831 $ 12,604 $ 67,435 $ 54,831 CITY OF CHINO HILLS Schedule 6 COMBINING SCHEDULE OF REVENUES, Page 11 of 12 EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 MISCELLANEOUS GRANTS Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) End of Fiscal Year Variance Favorable Budget Actual (Unfavorable) 2,468,500 568,799 (1,899,701) L,4bt5,5UU ouu,iya t i,uaa,tu-I f 2,468,500 568,799 (1,899,701) (2,557,200) (568,799) (1,988,401) (2,557,200) (568,799) (1,988,401) (88,700) - 88,700 $ (88,700) $ - $ 88,700 (88,700) - 88,700 $ (88,700) $ - $ 88,700 Schedule 6 Page 12 of 12 2002 500 329 Variance 211,900 163,432 Favorable Budget Actual (Unfavorable) $ 5,275,700 $ 5,320,617 $ 44,917 1,101,500 1,240,256 138,756 5,056,400 2,893,580 (2,162,820) 12,098,800 9,149,145 (2,949,655) 3,012,700 2,918,222 (94,478) 1,221,900 1,240,102 18,202 27,767,000 22,761,922 (5,005,078) 500 329 171 211,900 163,432 48,468 13,930,500 11,172,909 2,757,591 5,247,800 1,760,808 3,486,992 79,500 75,084 4,416 3,577,000 1,895,004 1,681,996 808,200 743,494 64,706 23,855,400 15,811,060 8,044,340 3,911,600 6,950,862 3,039,262 2,500,000 603,118 (1,896,882) 1,432,600 1,395,632 (36,968) (17,320,600) (5,899,414) 11,421,186 (13,388,000) (3,900,664) 9,487,336 (9,476,400) 3,050,198 12,526,598 - 39,640 39,640 $ (9,476,400) $ 3,089,838 $ 12,566,238 $ 25,934,326 $ 25,934,326 $ - - (120,018) (120,018) 25,934,326 25,814,308 (120,018) (9,476,400) 3,089,838 12,566,238 $ 16,457,926 $ 28,904,146 $ 12,446,220 67 THIS PAGE INTENTIONALLY LEFT BLANK CAPITAL PROJECTS FUNDS Capital Improvement - To account for receipts and expenditures of money for the construction of the Civic Center facility Community Facilities Districts: Regional, #9 Rincon Village, and #10 Fairfield Ranch - To account for receipts and expenditures of money for the construction of projects on behalf of these community facilities districts. We A S S E T S Cash and investments Restricted cash Cash with fiscal agent Receivables: Interest Due from other funds Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Retention payable Total Liabilities Fund Balances: Reserved: Encumbrances Unreserved: Undesignated Total Fund Balances Total Liabilities and Fund Balances CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 2002 70 Capital Improvement $ 3,375,328 1,374,920 29,584 $ 4,779,832 Schedule 7 Page 1 of 2 Communitv Facilities Districts #9 #10 Rincon Fairfield Village Ranch $ 1,857,941 $ 171 - 397,039 13,257 1 $ 1,871,198 $ 397,211 $ 4,777,876 $ - $ I oaa 4,779,832 - - 8,386,740 - - (8,386,740) 1,871,198 397,211 - 1,871,198 397,211 $ 4,779,832 $ 1,871,198 $ 397,211 Schedule 7 Page 2 of 2 T O T A L S 2002 2001 $ 5,233,440 $ 3,076,470 1,374,920 - 397,039 1,694,682 13,258 15,333 29,584 29,584 $ 7,048,241 $ 4,816,069 $ 4,777,876 $ 1,547,449 1,956 174,659 4,779,832 1,722,108 8,386,740 10,287,657 (6,118,331) (7,193,696) 2,268,409 3,093,961 $ 7,048,241 $ 4,816,069 71 CITY OF CHINO HILLS Schedule 8 COMBINING STATEMENT OF REVENUES, EXPENDITURES Page 1 of 2 AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Community Facilities Districts #9 #10 Capital Rincon Fairfield Improvement Village Ranch Revenues: Use of money and property Contribution from property owners Total Revenues Expenditures: Current: General government Contribution to assessment districts Capital outlay Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Operating transfers in Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses Fund Balances: Beginning of Fiscal Year End of Fiscal Year V0 $ - $ 58,249 $ 31,910 47,919 431,585 78,652 47,919 489,834 110,562 - - 4,694 12,876,119 17,914 1,403,340 12,876,119 17,914 1,408,034 (12,828,200) 471,920 (1,297,472) 12,828,200 12,828,200 471,920 1,399,278 $ 1,871,198 (1,297,472) 1,694,683 $ 397,211 Schedule 8 Page 2 of 2 T O T A L S gnnq 2nni $ 90,159 $ 156,967 558,156 350,274 648,315 507,241 4,694 5,142 - 652 14,297,373 3,849,567 14,302,067 3,855,361 (13,653,752) (3,348,120) 12,828,200 3,696,020 12,828,200 3,696,020 (825,552) 347,900 3,093,961 2,746,061 $ 2,268,409 $ 3,093,961 73 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Use of money and property Contribution from property owners Total Revenues Expenditures: Current: General Government Capital outlay Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Operating transfers in Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year End of Fiscal Year 74 CAPITAL IMPROVEMENT Schedule 9 Page 1 of 3 Variance - Favorable Budget Actual (Unfavorable) 12,956,200 47,919 (12,908,281) 12,956,200 47,919 (12,908,281) 76,600,200 21,262,859 55,337,341 76,600,200 21,262,859 55,337,341 (63,644,000) (21,214,940) 42,429,060 63,644,000 12,828,200 (50,815,800) 63,644,000 12,828,200 (50,815,800) (8,386,740) (8,386,740) 8,386,740 8,386,740 #9 RINCON VILLAGE CFD Variance - Favorable Budget Actual (Unfavorable) $ 36,800 $ 58,249 $ 21,449 470,700 431,585 (39,115) 507,500 489,834 (17,666) 2,396,500 17,914 2,378,586 2,396,500 17,914 2,378,586 $ 57,100 $ 31,910 (1,889,000) 471,920 2,360,920 57,100 110,562 (1,889,000) 471,920 2,360,920 (1,889,000) 471,920 2,360,920 1,399,278 1,399,278 - $ (489,722) $ 1,871,198 $ 2,360,920 75 Schedule 9 Page 2 of 3 #10 FAIRFIELD RANCH CFD 6,100 Variance - 1,406 Favorable Budget Actual (Unfavorable) $ 57,100 $ 31,910 $ (25,190) - 78,652 78,652 57,100 110,562 53,462 6,100 4,694 1,406 1,685,400 1,403,340 282,060 1,691,500 1,408,034 283,466 (1,634,400) (1,297,472) 336,928 (1,634,400) (1,297,472) 336,928 (1,634,400) (1,297,472) 336,928 1,694,683 1,694,683 - $ 60,283 $ 397,211 $ 336,928 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Revenues: Use of money and property Contribution from developers Total Revenues Expenditures: Current: General city Capital outlay Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Operating transfers in Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year End of Fiscal Year 0. Schedule 9 Page 3 of 3 2002 Variance - Favorable Budget Actual (Unfavorable) $ 93,900 $ 90,159 $ (3,741) 13,426,900 558,156 (12,868,744) 13,520,800 648,315 (12,872,485) 6,100 4,694 1,406 80,682,100 22,684,113 57,997,987 80,688,200 22,688,807 57,999,393 (67,167,400) (22,040,492) 45,126,908 63,644,000 12,828,200 (50,815,800) 63,644,000 12,828,200 (50,815,800) (3,523,400) (9,212,292) (5,688,892) (3,523,400) 3,093,961 $ (429,439) 8,386,740 8,386,740 (825,552) 3,093,961 $ 2,268,409 2,697,848 $ 2,697,848 ENTERPRISE FUNDS Water Utility - To account for the revenues and expenses for the operation, maintenance, and facility improvements of the City's water production, transmission, and distribution system. Sewer Utilitv - To account for the revenues and expenses for the collection and treatment (via contract) of the liquid waste generated within the City. 77 ASSETS Current assets: Cash and investments Restricted assets: Cash and investments with fiscal agents Accounts receivable, net of allowances Accrued interest receivable Lease payments receivable - current Due from other funds Due from other agencies Due from developers Inventories Total Current Assets Non -Current Assets: Lease payments receivable Deferred charges Investment in Water Facilities Authority Advances to other funds Total Non -Current Assets Property, Plant and Equipment: CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS JUNE 30, 2002 Schedule 10 Page 1 of 2 Water Sewer TOTAL Utility Utility 2002 2 0 0 1 $ 13,173,204 $ 7,461,907 $ 20,635,111 $ 21,000,896 5,527,202 - 5,527,202 1,925 1,740,104 702,335 2,442,439 1,894,722 123,987 64,995 188,982 315,985 257,517 - 257,517 476,067 115,892 1,918 117,810 92,580 1,284,448 1,864 1,286,312 8,889 2,434,456 190,294 2,624,750 2,031,071 90,927 623 91,550 121,484 24,747,737 8,423,936 33,171,673 25,943,619 201,934 - - - 396,180 589,401 - 589,401 309,520 4,133,032 - 4,133,032 4,282,892 3,901,584 8,653,500 12,555,084 11,013,634 8,624,017 8,653,500 17,277,517 16,002,226 Land 3,056,883 12,000 3,068,883 3,068,883 Easement 537,940 - 537,940 537,940 Utility plant in service 18,071,773 1,881,778 19,953,551 19,956,903 Pipeline in service 71,799,302 33,962,090 105,761,392 98,095,588 Meters 1,318,844 - 1,318,844 1,229,665 Buildings and improvements 873,368 133,655 1,007,023 741,858 Structure other than buildings 249,466 40,768 290,234 23,514 Equipment 201,934 142,554 344,488 508,703 Construction in progress 10,564,138 - 10,564,138 5,874,474 Water rights 14,668,150 - 14,668,150 14,668,150 Capacity rights - 194,564 194,564 - Total Property, Plant and Equipment 121,341,798 36,367,409 157,709,207 144,705,678 Less accumulated depreciation (21,786,638) (9,157,207) (30,943,845) (26,134,238) Less accumulated amortization (1,466,815) (4,864) (1,471,679) (1,100,111) Net Property, Plant and Equipment 98,088,345 27,205,338 125,293,683 117,471,329 Total Assets $131,460,099 $ 44,282,774 $175,742,873 $159,417,174 78 CITY OF CHINO HILLS Schedule 10 COMBINING BALANCE SHEET Page 2 of 2 ALL ENTERPRISE FUNDS JUNE 30, 2002 Total Liabilities and Fund Equity $131,460,099 $ 44,282,774 $175,742,873 $159,417,174 79 Water Sewer TOTAL Utility Utility 2002 2 0 0 1 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts and contracts payable $ 1,302,195 $ 392,463 $ 1,694,658 $ 1,597,992 Salaries and benefits payable 41,163 8,598 49,761 38,125 Deposits 529,235 417,805 947,040 1,077,766 Funds held for others - 11,400 11,400 11,400 Due to other funds - 85 85 80 Due to other governments 5,977 - 5,977 5,737 Due to developers 8,160 - 8,160 8,160 Compensated absences 1,000 1,500 2,500 2,500 Capital lease obligation - current 569 - 569 508 Certificates of participation - current 790,000 - 790,000 710,000 CVIFD building note payable - current 97,022 17,708 114,730 114,727 Accrued interest payable 116,541 - 116,541 86,290 Total Current Liabilities 2,891,862 849,559 3,741,421 3,653,285 Non -Current Liabilities: Capital lease obligation 1,595 - 1,595 2,165 Certificates of participation 25,815,117 - 25,815,117 17,076,284 Developer program obligations 3,237,533 - 3,237,533 4,056,665 Advances for construction 49,989 - 49,989 69,161 CVIFD building note payable - - - 114,730 Compensated absences payable 77,773 23,027 100,800 93,859 Advances from other funds 9,346,400 - 9,346,400 9,346,400 Total Long -Term Liabilities 38,528,407 23,027 38,551,434 30,759,264 Total Liabilities 41,420,269 872,586 42,292,855 34,412,549 Fund Equity: Contributed capital 70,498,058 25,373,474 95,871,532 97,765,000 Retained earnings 19,541,772 18,036,714 37,578,486 27,239,625 Total Fund Equity 90,039,830 43,410,188 133,450,018 125,004,625 Total Liabilities and Fund Equity $131,460,099 $ 44,282,774 $175,742,873 $159,417,174 79 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 11 End of Fiscal Year $ 19,541,772 $ 18,036,714 $ 37,578,486 $ 27,239,625 0 Water Sewer TOTAL Utility Utility 2002 2001 Operating Revenues: Charges for services $ 12,262,454 $ 4,064,258 $ 16,326,712 $ 14,772,393 Permit and inspection fees 96,061 - 96,061 80,409 Meter and installation fees 130,373 - 130,373 196,690 Other 5,400 - 5,400 10,812 Total Operating Revenues 12,494,288 4,064,258 16,558,546 15,060,304 Operating Expenses: Purchased water 5,811,918 - 5,811,918 5,083,345 Salaries and benefits 935,455 236,024 1,171,479 1,073,152 Utilities 636,564 16,451 653,015 609,186 Contractual services 731,501 2,085,832 2,817,333 2,532,222 Depreciation 2,231,380 914,818 3,146,198 2,897,925 Amortization 386,959 4,864 391,823 386,125 Repairs and maintenance 371,458 91,452 462,910 360,824 Services and supplies 129,381 40,694 170,075 144,425 Other general and administrative 1,697,681 261,362 1,959,043 1,737,164 Total Operating Expenses 12,932,297 3,651,497 16,583,794 14,824,368 Operating Income (Loss) (438,009) 412,761 (25,248) 235,936 Nonoperating Revenues (Expenses): Interest earnings 784,337 587,818 1,372,155 1,732,599 Contributions from developers 4,864,409 295,069 5,159,478 9,074,218 Other revenues 3,250,167 277,197 3,527,364 2,819,425 Gain (loss) on disposal of property 2,857 - 2,857 (394,435) Interest expense (1,499,967) - (1,499,967) (1,416,262) Developer reimbursement agreements (6,000) - (6,000) (3,327,741) Loss on investment in Water Facilities Authority (149,860) - (149,860) (142,317) Total Nonoperating Revenues (Expenses) 7,245,943 1,160,084 8,406,027 8,345,487 Net Income (Loss) before Operating Transfers 6,807,934 1,572,845 8,380,779 8,581,423 Operating transfers out - (77,844) (77,844) Net Income (Loss) 6,807,934 1,495,001 8,302,935 8,581,423 Add back depreciation related to contributed capital Less increase in contributed capital 1,134,305 759,163 1,893,468 1,771,284 Increase (Decrease) in Retained Earnings 7,942,239 2,254,164 10,196,403 10,352,707 Retained Earnings: Beginning of Fiscal Year, as originally reported 11,615,828 15,623,797 27,239,625 17,468,579 Restatement (16,295) 158,753 142,458 (581,661) Beginning of Fiscal Year, as restated 11,599,533 15,782,550 27,382,083 16,886,918 End of Fiscal Year $ 19,541,772 $ 18,036,714 $ 37,578,486 $ 27,239,625 0 CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Adjustment to beginning retained earnings Other revenue Changes in Assets and Liabilities: (Increase) decrease in accounts receivable (Increase) decrease in accrued interest receivable (Increase) decrease in due from other funds (Increase) decrease in due from other agencies (Increase) decrease in due from developers (Increase) decrease in inventory Increase (decrease) in accounts and contracts payable Increase (decrease) in salary and benefits payable Increase (decrease) in customer deposits Increase (decrease) in due to other governments Increase (decrease) in funds held for others Increase (decrease) in due to other funds Increase (decrease) in compensated absences Increase (decrease) in accrued interest payable Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Operating transfers out (Increase) decrease in advances to other funds Increase (decrease) in advances from other funds Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds of long term debt Repayment of capital lease Repayment of 1996 Certificate of Participation Repayment of advances for construction Repayment of CVIFD note Contributions from developers Interest paid Purchases of property, plant and equipment Purchases of intangible assets Proceeds from sale of property Lease payment received Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Schedule 12 Page 1 of 2 Water Sewer TOTALS Utility Utility 2002 2 0 0 1 $ (438,009) $ 412,761 $ (25,248) $ 235,936 2,618,339 919,682 3,538,021 3,284,050 - 172,372 172,372 (581,661) 3,250,167 277,197 3,527,364 2,819,425 (302,690) (245,027) (547,717) (94,815) 77,609 49,394 127,003 (19,701) (26,472) 1,242 (25,230) 9,932 (1,277,433) 10 (1,277,423) 1,869 (567,297) (26,382) (593,679) (507,100) 29,934 - 29,934 (21,025) 118,789 (22,123) 96,666 (106,767) 11,396 240 11,636 2,275 (160,224) 29,498 (130,726) 71,987 240 - 240 - - - - (2,423) - 5 5 3 4,537 2,404 6,941 (5,044) 30,251 - 30,251 (2,596) 3,807,146 1,158,512 4,965,658 4,848,409 3,369,137 1,571,273 4,940,410 5,084,345 - (77,844) (77,844) - 246,269 (1,787,719) (1,541,450) (5,154,942) - - - 5,187,400 246,269 (1,865,563) (1,619,294) 32,458 9,545,000 - 9,545,000 - (509) - (509) (308) (710,000) - (710,000) (670,000) (19,172) - (19,172) (45,124) (97,020) (17,707) (114,727) (114,727) 4,864,409 295,069 5,159,478 1,611,614 (1,499,967) - (1,499,967) (1,416,262) (12,167,214) (151,182) (12,318,396) (3,499,726) - (194,564) (194,564) - 4,348 - 4,348 - 614,730 - 614,730 213,993 534,605 (68,384) 466,221 (3,920,540) 784,337 587,818 1,372,155 1,732,599 Net Cash Provided (Used) by Investing Activities 784,337 587,818 1,372,155 1,732,599 Net Increase (Decrease) in Cash and Investments 4,934,348 225,144 5,159,492 2,928,862 Cash and Investments at Beginning of Year 13,766,058 7,236,763 21,002,821 18,073,959 Cash and Investments at End of Year $ 18,700,406 $ 7,461,907 $ 26,162,313 $ 21,002,821 81 CITY OF CHINO HILLS Schedule 12 COMBINING STATEMENT OF CASH FLOWS Page 2 of 2 ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 I -M Water Sewer TOTALS Utility Utility 2 0 0 2 25-01 Reconciliation to the Balance Sheet: Cash and Investments $ 13,173,204 $ 7,461,907 $ 20,635,111 $ 21,000,896 Cash and Investments with Fiscal Agents 5,527,202 - 5,527,202 1,925 $ 18,700,406 $ 7,461,907 $ 26,162,313 $ 21,002,821 Schedule of Non -Cash Transactions The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $1,992,226 and $1,438,708 respectively I -M INTERNAL SERVICE FUNDS Equipment Maintenance - To account for the revenues and expenses associated with the maintenance of the City's vehicles. Data Processing - To account for the revenues and expenses associated with the City's computers and data processing system. 83 ASSETS Current assets: Cash and investments Accounts receivable, net of allowances Accrued interest receivable Advances to other funds Total Current Assets Property, Plant and Equipment: Vehicles Equipment Construction in progress Total Property, Plant and Equipment Less accumulated depreciation Net Property, Plant and Equipment Total Assets Current Liabilities: Accounts and contracts payable Salaries and benefits payable Compensated absences Total Current Liabilities Long -Term Liabilities: Compensated absences payable Total Long -Term Liabilities Total Liabilities Fund Equity: Contributed capital Retained earnings: Unreserved Total Fund Equity Total Liabilities and Fund Equity CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS JUNE 30, 2002 Equipment Schedule 13 Data TOTAL Processing 2002 _ 2001 $ 1,904,787 $ 1,054,153 $ 2,958,940 $ 2,800,419 - 23,995 23,995 19,907 18,331 10,229 28,560 40,580 1,500,000 - 1,500,000 1,500,000 3,423,118 1,088,377 4,511,495 4,360,906 2,225,579 - 2,225,579 1,936,440 217,317 180,040 397,357 854,625 3,712 - 3,712 3,712 2,446,608 180,040 2,626,648 2,794,777 (1,925,812) (137,625) (2,063,437) (2,178,453) 520,796 42,415 563,211 616,324 $ 3,943,914 $ 1,130,792 $ 5,074,706 $ 4,977,230 $ 109,074 $ 15,430 $ 124,504 $ 84,869 3,086 - 3,086 1,717 500 - 500 500 112,660 15,430 128,090 87,086 4,792 - 4,792 3,791 4,792 - 4,792 3,791 117,452 15,430 132,882 90,877 1,783,230 565,882 2,349,112 2,477,165 2,043,232 549,480 2,592,712 2,409,188 3,826,462 1,115,362 4,941,824 4,886,353 $ 3,943,914 $ 1,130,792 $ 5,074,706 $ 4,977,230 84 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 14 Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Increase (decrease) in retained earnings Retained Earnings: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated (41,646) - (41,646) 115,486 71,733 187,219 79,176 $ 194,662 $ 1,852,068 (3,498) 1,848,570 20,227 $ 91,960 $ 557,120 (99,600) 457,520 Increase (decrease) in retained earnings 194,662 91,960 End of Fiscal Year $ 2,043,232 $ 549,480 85 99,403 $ 286,622 $ 2,409,188 (103,098) 2,306,090 286,622 $ 2,592,712 368,964 119,198 $ 488,162 $ 1,926,432 (5,406) 1,921,026 488,162 $ 2,409,188 Equipment Data TOTAL Maintenance Processing 2002 2 0 0 1 Operating Revenues: Charges for services $ 466,274 $ 373,800 $ 840,074 $ 745,563 Total Operating Revenues 466,274 373,800 840,074 745,563 Operating Expenses: Salaries and benefits 74,341 - 74,341 42,581 Contractual services 858 113,584 114,442 159,168 Depreciation 138,903 71,600 210,503 231,198 Repairs and maintenance 156,416 113,034 269,450 123,036 Services and supplies 78,858 46,765 125,623 102,560 Other general and administrative 8,595 - 8,595 7,891 Total Operating Expenses 457,971 344,983 802,954 666,434 Operating Income (Loss) 8,303 28,817 37,120 79,129 Nonoperating Revenues (Expenses): Interest income 139,117 41,654 180,771 268,867 Other revenue 9,712 1,262 10,974 20,968 Total Nonoperating Revenues (Expenses) 148,829 42,916 191,745 289,835 Net Income (Loss) Before Operating Transfers 157,132 71,733 228,865 368,964 Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Increase (decrease) in retained earnings Retained Earnings: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated (41,646) - (41,646) 115,486 71,733 187,219 79,176 $ 194,662 $ 1,852,068 (3,498) 1,848,570 20,227 $ 91,960 $ 557,120 (99,600) 457,520 Increase (decrease) in retained earnings 194,662 91,960 End of Fiscal Year $ 2,043,232 $ 549,480 85 99,403 $ 286,622 $ 2,409,188 (103,098) 2,306,090 286,622 $ 2,592,712 368,964 119,198 $ 488,162 $ 1,926,432 (5,406) 1,921,026 488,162 $ 2,409,188 CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Adjustment to beginning retained earnings Changes in Assets and Liabilities: (Increase) decrease in accounts receivable (Increase) decrease in interest receivable Increase (decrease) in accounts and contracts payable Increase (decrease) in salary and benefits payable Increase (decrease) in compensated absences Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Legal settlement Contribution from other funds Transfer to capital improvement fund Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Purchases of property, plant and equipment Sale of property Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest on investments Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Investments Cash and Investments at Beginning of Year Cash and Investments at End of Year Schedule of Non -Cash Transactions There were no non-cash transactions during the fiscal year. Schedule 15 Equipment Data TOTALS Maintenance Processing 2002 2 0 0 1 $ 8,303 $ 28,817 $ 37,120 $ 79,129 138,903 71,600 210,503 231,198 - - - (5,406) - (4,088) (4,088) 9,679 8,726 3,294 12,020 (5,429) 43,244 (3,609) 39,635 40,760 1,369 - 1,369 232 1,001 - 11001 103 193,243 67,197 260,440 271,137 201,546 96,014 297,560 350,266 - 1,262 1,262 - 7,512 - 7,512 24,410 (41,646) - (41,646) - (34,134) 1,262 (32,872) 24,410 (289,138) - (289,138) (170,437) 2,200 2,200 24,095 (286,938) - (286,938) (146,342) 139,117 41,654 180,771 268,867 139,117 41,654 180,771 268,867 19,591 138,930 158,521 497,201 1,885,196 915,223 2,800,419 2,303,218 $ 1,904,787 $ 1,054,153 $ 2,958,940 $ 2,800,419 AGENCY FUNDS Special Assessment Districts: AD #1980, AD #1994 and AD #1995 - To account for receipts and expenditures of money for administering the assessment and collection of assessments, and debt service for these special assessment districts. Community Facilities Districts: Regional, #1 Rolling Ridge, #2 Los Ranchos, #4 The Oaks, #5 Rincon Village, #6 Carbon Canyon, #8 Butterfield, #9 Rincon Village and #10 Fairfield Ranch - To account for receipts and expenditures of money for administering the assessment and collection of special taxes, and debt service for these community facilities districts. General Agency Fund - To account for receipts and expenditures of money for the agency fund in which funds are held by the City as an agent for others. EM CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2002 Schedule 16 Page 1 of 4 Special Assessment Districts AD #1980 AD #1994 AD #1995 A S S E T S Cash and investments $ 115,971 $ 940,485 $ 873,356 Cash and investments with fiscal agents - 1,170,261 3,144,805 Account receivable - - - Accrued interest receivable 1,019 10,793 12,880 Special assessments receivable 290 118 9,353 Deposits with others - - - Total Assets $ 117,280 $ 2,121,657 $ 4,040,394 LIABILITIES Accounts payable Deposits Due to Inland Empire Utilities Agency Advances from other funds Funds held for others Total Liabilities W. $ - $ 1,289 117,280 2,120,368 $ 117,280 $ 2,121,657 $ 3,527 4,036,867 $ 4,040,394 Schedule 16 Page 2 of 4 $ 1,000 $ 1,063 $ 1,000 $ 1,196 $ - $ 1,131 - - - 901,584 - - 2,129,357 7,025,012 8,583,762 1,487,443 850,093 2,521,824 $ 2,130,357 $ 7,026,075 $ 8,584,762 $ 2,390,223 $ 850,093 $ 2,522,955 0 Community Facilities Districts #1 #2 #5 #6 Rolling Los #4 Rincon Carbon #8 Ridge Ranchos The Oaks Village Canyon Butterfield $ 1,162,500 $ 6,932,695 $ 8,207,642 $ 2,137,817 $ 841,100 $ 2,196,660 946,032 8 288,008 209,006 - 298,008 9,404 62,573 76,197 21,284 6,675 20,810 12,421 30,799 12,915 22,116 2,318 7,477 $ 2,130,357 $ 7,026,075 $ 8,584,762 $ 2,390,223 $ 850,093 $ 2,522,955 $ 1,000 $ 1,063 $ 1,000 $ 1,196 $ - $ 1,131 - - - 901,584 - - 2,129,357 7,025,012 8,583,762 1,487,443 850,093 2,521,824 $ 2,130,357 $ 7,026,075 $ 8,584,762 $ 2,390,223 $ 850,093 $ 2,522,955 0 CITY OF CHINO HILLS Schedule 16 COMBINING BALANCE SHEET Page 3 of 4 ALL AGENCY FUNDS JUNE 30, 2002 LIABILITIES Accounts payable Deposits Due to Inland Empire Utilities Agency Advances from other funds Funds held for others Total Liabilities $ 4,190 $ 1,000 $ 90,162 - - 3,755,753 1,426,677 2,465,093 1,775,707 - $ 2,469,283 $ 1,776,707 $ 5,272,592 Community Facilities Districts #9 #10 General Rincon Fairfield Agency Village Ranch Fund A S S E T S Cash and investments $ 775,193 $ 532,288 $ 5,272,592 Cash and investments with fiscal agents 1,671,649 1,223,794 - Account receivable - - - Accrued interest receivable 7,433 3,874 - Special assessments receivable 15,008 16,751 - Deposits with others - - - Total Assets $ 2,469,283 $ 1,776,707 $ 5,272,592 LIABILITIES Accounts payable Deposits Due to Inland Empire Utilities Agency Advances from other funds Funds held for others Total Liabilities $ 4,190 $ 1,000 $ 90,162 - - 3,755,753 1,426,677 2,465,093 1,775,707 - $ 2,469,283 $ 1,776,707 $ 5,272,592 Schedule 16 Page 4 of 4 T O T A L S 2002 2001 $ 29,988,299 $ 31,913,440 8,951,571 8,810,009 - 17,668 232,942 315,922 129,566 1,034,123 - 15,550 $ 39,302,378 $ 42,106,712 $ 105,558 $ 2,225,486 3,755,753 3,563,280 1,426,677 5,190,571 901,584 901,584 33,112,806 30,225,791 $ 39,302,378 $ 42,106,712 Mil CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALLAGENCYFUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 17 Page 1 of 5 SPECIAL ASSESSMENT DISTRICT #1994 Assets: Cash and investments Balance 1,215,941 $ 817,940 $ 1,093,396 Balance 940,485 July 1, 2001 Additions Deletions June 30, 2002 SPECIAL ASSESSMENT 1,170,261 Accrued interest receivable 18,202 10,793 DISTRICT #1980 18,202 10,793 Special assessments receivable 1,072 Assets: 1,072 118 Total Assets $ 2,040,110 Cash and investments $ 87,308 $ 43,524 $ 14,861 $ 115,971 Accrued interest receivable 1,430 1,019 1,430 1,019 Special assessments receivable 130 $ 290 $ 130 $ 290 Deposits with others 15,550 2,039,639 - 2,766,033 15,550 2,685,304 - Total Assets $ 104,418 $ 44,833 $ 31,971 $ 117,280 Liabilities: 2,121,657 Funds held for others $ 104,418 $ 44,833 $ 31,971 $ 117,280 Total Liabilities $ 104,418 $ 44,833 $ 31,971 $ 117,280 SPECIAL ASSESSMENT DISTRICT #1994 Assets: Cash and investments $ 1,215,941 $ 817,940 $ 1,093,396 $ 940,485 Cash and investments with fiscal agents 804,895 1,938,471 1,573,105 1,170,261 Accrued interest receivable 18,202 10,793 18,202 10,793 Special assessments receivable 1,072 118 1,072 118 Total Assets $ 2,040,110 $ 2,767,322 $ 2,685,775 $ 2,121,657 Liabilities: Accounts payable $ 471 $ 1,289 $ 471 $ 1,289 Funds held for others 2,039,639 2,766,033 2,685,304 2,120,368 Total Liabilities $ 2,040,110 $ 2,767,322 $ 2,685,775 $ 2,121,657 SPECIAL ASSESSMENT DISTRICT #1995 Assets: Cash and investments $ 1,091,555 $ 1,474,599 $ 1,692,798 $ 873,356 Cash and investments with fiscal agent 2,920,546 1,788,632 1,564,373 3,144,805 Accrued interest receivable 18,449 12,880 18,449 12,880 Special assessments receivable 8,832 9,353 8,832 9,353 Total Assets $ 4,039,382 $ 3,285,464 $ 3,284,452 $ 4,040,394 Liabilities: Accounts payable $ 863 $ 3,527 $ 863 $ 3,527 Funds held for others 4,038,519 3,281,937 3,283,589 4,036,867 Total Liabilities $ 4,039,382 $ 3,285,464 $ 3,284,452 $ 4,040,394 92 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 17 Page 2 of 5 I Balance Balance July 1, 2001 Additions Deletions June 30, 2002 COMMUNITY FACILITIES DISTRICT #1 Rolling Ridge Assets: Cash and investments $ 2,236,586 $ 1,267,375 $ 2,341,461 $ 1,162,500 Cash and investments with fiscal agents 946,225 883,857 884,050 946,032 Accrued interest receivable 31,331 9,404 31,331 9,404 Special assesments receivable 12,433 12,421 12,433 12,421 Total Assets $ 3,226,575 $ 2,173,057 $ 3,269,275 $ 2,130,357 Liabilities: Accounts payable $ 2,680 $ 1,000 $ 2,680 $ 1,000 Funds held for others 3,223,895 2,172,057 3,266,595 2,129,357 Total Liabilities $ 3,226,575 $ 2,173,057 $ 3,269,275 $ 2,130,357 COMMUNITY FACILITIES DISTRICT #2 Los Ranchos Assets: Cash and investments $ 5,337,251 $ 2,302,894 $ 707,450 $ 6,932,695 Cash and investments with fiscal agents 312 529,144 529,448 8 Accrued interest receivable 75,824 62,573 75,824 62,573 Special assessments receivable 25,102 30,799 25,102 30,799 Total Assets $ 5,438,489 $ 2,925,410 $ 1,337,824 $ 7,026,075 Liabilities: Accounts payable $ - $ 1,063 $ - $ 1,063 Funds held for others 5,438,489 2,924,347 1,337,824 7,025,012 Total Liabilities $ 5,438,489 $ 2,925,410 $ 1,337,824 $ 7,026,075 COMMUNITY FACILITIES DISTRICT #4 The Oaks Assets: Cash and investments $ 7,301,661 $ 1,400,776 $ 494,795 $ 8,207,642 Cash and investments with fiscal agent 288,069 256,699 256,760 288,008 Accrued interest receivable 106,212 76,197 106,212 76,197 Special assessments receivable 12,467 12,915 12,467 12,915 Total Assets $ 7,708,409 $ 1,746,587 $ 870,234 $ 8,584,762 Liabilities: Accounts payable $ 2,680 $ 1,000 $ 2,680 $ 1,000 Funds held for others 7,705,729 1,745,587 867,554 8,583,762 Total Liabilities $ 7,708,409 $ 1,746,587 $ 870,234 $ 8,584,762 I CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 17 Page 3 of 5 Liabilities: Accounts payable $ 3,393 $ 1,196 3,393 $ 1,196 Advances from other funds 901,584 - - 901,584 Funds held for others 1,393,026 2,746,598 2,652,181 1,487,443 Total Liabilities $ 2,298,003 $ 2,747,794 $ 2,655,574 $ 2,390,223 COMMUNITY FACILITIES DISTRICT #6 Carbon Canyon Assets: Cash and investments $ 682,950 $ 457,352 $ 299,202 $ 841,100 Accrued interest receivable 9,818 6,675 9,818 6,675 Special assessments receivable 3,149 2,318 3,149 2,318 Total Assets $ 695,917 $ 466,345 $ 312,169 $ 850,093 Liabilities: Funds held for others Balance 695,917 $ Balance $ July 1, 2001 Additions Deletions June 30, 2002 COMMUNITY FACILITIES 695,917 $ 466,345 $ DISTRICT #5 Rincon Village $ 850,093 COMMUNITY FACILITIES Assets: Cash and investments $ 1,141,687 $ 1,606,905 $ 610,775 $ 2,137,817 Cash and investments with fiscal agents 209,051 195,905 195,950 209,006 Accrued interest receivable 26,525 21,284 26,525 21,284 Special assessments receivable 920,740 923,700 1,822,324 22,116 Total Assets $ 2,298,003 $ 2,747,794 $ 2,655,574 $ 2,390,223 Liabilities: Accounts payable $ 3,393 $ 1,196 3,393 $ 1,196 Advances from other funds 901,584 - - 901,584 Funds held for others 1,393,026 2,746,598 2,652,181 1,487,443 Total Liabilities $ 2,298,003 $ 2,747,794 $ 2,655,574 $ 2,390,223 COMMUNITY FACILITIES DISTRICT #6 Carbon Canyon Assets: Cash and investments $ 682,950 $ 457,352 $ 299,202 $ 841,100 Accrued interest receivable 9,818 6,675 9,818 6,675 Special assessments receivable 3,149 2,318 3,149 2,318 Total Assets $ 695,917 $ 466,345 $ 312,169 $ 850,093 Liabilities: Funds held for others $ 695,917 $ 466,345 $ 312,169 $ 850,093 Total Liabilities $ 695,917 $ 466,345 $ 312,169 $ 850,093 COMMUNITY FACILITIES DISTRICT #8 Butterfield Assets: Cash and investments $ 461,406 $ 2,153,153 $ 417,899 $ 2,196,660 Cash and investments with fiscal agents 298,071 266,380 266,443 298,008 Accrued interest receivable 7,721 20,810 7,721 20,810 Special assessments receivable 10,599 7,477 10,599 7,477 Total Assets $ 777,797 $ 2,447,820 $ 702,662 $ 2,522,955 Liabilities: Accounts payable $ 3,155 $ 1,131 $ 3,155 $ 1,131 Funds held for others 774,642 2,446,689 699,507 2,521,824 Total Liabilities $ 777,797 $ 2,447,820 $ 702,662 $ 2,522,955 94 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 17 Page 4 of 5 W Balance Balance July 1, 2001 Additions Deletions June 30, 2002 COMMUNITY FACILITIES DISTRICT #9 Rincon Village Assets: Cash and investments $ 926,625 $ 2,288,702 $ 2,440,134 $ 775,193 Cash and investments with fiscal agents 2,101,044 2,795,616 3,225,011 1,671,649 Account receivable 17,668 - 17,668 - Accrued interest receivable 15,099 7,433 15,099 7,433 Special assessments receivable 11,654 15,008 11,654 15,008 Total Assets $ 3,072,090 $ 5,106,759 $ 5,709,566 $ 2,469,283 Liabilities: Accounts payable $ 18,037 $ 4,190 $ 18,037 $ 4,190 Funds held for others 3,054,053 5,102,569 5,691,529 2,465,093 Total Liabilities $ 3,072,090 $ 5,106,759 $ 5,709,566 $ 2,469,283 COMMUNITY FACILITIES DISTRICT #10 Fairfield Ranch Assets: Cash and investments $ 482,412 $ 932,093 $ 882,217 $ 532,288 Cash and investments with fiscal agents 1,241,796 872,438 890,440 1,223,794 Accrued interest receivable 5,311 3,874 5,311 3,874 Special assessments receivable 27,945 16,751 27,945 16,751 Total Assets $ 1,757,464 $ 1,825,156 $ 1,805,913 $ 1,776,707 Liabilities: Accounts payable $ - $ 1,000 $ - $ 1,000 Funds held for others 1,757,464 1,824,156 1,805,913 1,775,707 Total Liabilities $ 1,757,464 $ 1,825,156 $ 1,805,913 $ 1,776,707 GENERAL AGENCY FUND Assets: Cash and investments $ 10,948,058 $ 4,964,381 $ 10,639,847 $ 5,272,592 Liabilities: Accounts payable $ 2,194,207 $ 90,162 $ 2,194,207 $ 90,162 Deposits 3,563,280 2,733,118 2,540,645 3,755,753 Due to Inland Empire Utilities Agency 5,190,571 2,141,101 5,904,995 1,426,677 Total Liabilities $ 10,948,058 $ 4,964,381 $ 10,639,847 $ 5,272,592 W CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 TOTALS - ALL AGENCY FUNDS Assets: Cash and investments Cash and investments with fiscal agents Account receivable Accrued interest receivable Special assessments receivable Deposits with others Total Assets Liabilities: Accounts payable Deposits Due to Inland Empire Utilities Agency Advances from other funds Funds held for others Total Liabilities Balance July 1, 2001 Additions Deletions $ 31,913,440 $ 19,709,694 $ 21,634,835 8,810,009 9,527,142 9,385,580 17,668 - 17,668 315,922 232,942 315,922 1,034,123 1,031,150 1,935,707 15,550 - 15,550 $ 42,106,712 $ 30,500,928 $ 33,305,262 Schedule 17 Page 5 of 5 Balance June 30, 2002 $ 29,988,299 8,951,571 232,942 129,566 $ 39,302,378 $ 2,225,486 $ 105,558 $ 2,225,486 $ 105,558 3,563,280 2,733,118 2,540,645 3,755,753 5,190, 571 2,141,101 5,904,995 1,426,677 901,584 - - 901,584 30,225,791 25,521,151 22,634,136 33,112,806 $ 42,106,712 $ 30,500,928 $ 33,305,262 $ 39,302,378 ACCOUNT GROUPS General Fixed Assets Account Group - To account for the cost of fixed assets of the City that are used in the performance of general governmental functions and that are not accounted for in proprietary funds. General Long -Term Debt Account Group - To account for the unmatured long-term indebtedness of the City. 97 CITY OF CHINO HILLS COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS JUNE 30, 2002 General Fixed Assets: Land Buildings Structures other than buildings Equipment Pipeline in service Total General Fixed Assets Investment in General Fixed Assets by Souces: General fund Special revenue funds Capital project funds Total Investment in General Fixed Assets M. 2002 $ 17,367,216 6,939,661 5,741,278 802,868 217,375 $ 31,068,398 $ 6,351,914 9,050,213 15,666,271 $ 31,068,398 Schedule 18 2001 $ 17,161,568 10,010,156 5,537,642 983,955 $ 33,693,321 $ 4,024,618 9,312,517 20,356,186 $ 33,693,321 CITY OF CHINO HILLS Schedule 19 STATEMENT OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 2002 �R Structures Other than Pipeline in Land Buildings Buildings Equipment Service Total Function and Activity General Government: City Clerk $ - $ - $ - $ 83,690 $ - $ 83,690 City Manager - - _ - _ _ Community Development - - - 42,905 - 42,905 Community Services - - - 25,506 - 25,506 Planning - - - 22,366 - 22,366 Building and Safety - - - 4,875 - 4,875 Finance - - - 29,880 - 29,880 Facility Maintenance - - - 249,395 - 249,395 Other - 5,867,551 508,291 4,477 - 6,380,319 Total General Government - 5,867,551 508,291 463,094 - 6,838,936 Public Safety Services: Police - - - 58,674 - 58,674 Total Public Safety - - - 58,674 - 58,674 Highways & Streets: Engineering - - - 7,253 - 7,253 Public Works 257,248 737,529 - 33,800 217,375 1,245,952 Total Highways and Streets 257,248 737,529 - 41,053 217,375 1,253,205 Parks & Landscape 17,109,968 304,655 5,232,987 115,107 - 22,762,717 Culture and Recreation - 29,926 - 124,940 - 154,866 Total General Fixed Assets $17,367,216 $ 6,939,661 $ 5,741,278 $ 802,868 $ 217,375 $31,068,398 �R CITY OF CHINO HILLS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Schedule 20 Public Safety Services: Police Balance - Balance 58,674 July 1, 2001 Additions Deductions June 30, 2002 Function and Activity 58,674 Highways and Streets: General Government: Engineering City Clerk $ 93,859 $ - $ 10,169 $ 83,690 City Manager 10,541 - 10,541 - Community Development 50,124 - 7,219 42,905 Community Services 25,506 - - 25,506 Planning 22,366 - - 22,366 Buidling and Safety 4,875 - - 4,875 Finance 76,506 - 46,626 29,880 Facility Maintenance 267,452 - 18,057 249,395 Other 4,579,426 1,819,454 18,561 6,380,319 Total General Government 5,130,655 1,819,454 111,173 6,838,936 Public Safety Services: Police 92,363 - 33,689 58,674 Total Public Safety 92,363 - 33,689 58,674 Highways and Streets: Engineering 7,253 - - 7,253 Public Works 5,480,230 483,172 4,717,450 1,245,952 Total Highways and Streets 5,487,483 483,172 4,717,450 1,253,205 Parks & Landscape 22,907,961 439,236 584,480 22,762,717 Culture and Recreation 74,859 94,211 14,204 154,866 Total General Fixed Assets $ 33,693,321 $ 2,836,073 $ 5,460,996 $ 31,068,398 100 CITY OF CHINO HILLS COMPARATIVE SCHEDULES OF GENERAL LONG-TERM DEBT JUNE 30, 2002 2002 Amount Available and to be Provided for Payment of General Long -Term Debt: Schedule 21 2001 Amount to be provided $ 45,221,220 $ 47,913,463 Total Amounts Available and to be Provided for the Payment of General Long -Term Debt $ 45,221,220 $ 47,913,463 General Long -Term Debt Payable: Compensated absences $ 374,523 $ 301,796 Advances from developers 890,550 890,550 Development fee program obligations 43,403,536 45,889,866 Claims payable 245,617 368,426 Capital lease obligations 196,704 242,261 Equestrian center lease 20 21 CVIFD note payable 110,270 220,543 Total General Long -Term Debt Payable $ 45,221,220 $ 47,913,463 101 THIS PAGE INTENTIONALLY LEFT BLANK 102 STATISTICAL SECTION 103 City of Chino Hills General Governmental Revenues by Source (1) Last Ten Fiscal Years (2) (In Thousand Dollars) (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions from Assessment Districts and Other Revenue. 104 Special Licenses Use of Inter- Develop - Fiscal Assess- and Money and Govern- ment Year Taxes ments Permits Property mental Fees 1992-93 $ 4,507 $ 6,653 $ 977 $ 3,764 $ 1,332 $ 7,250 1993-94 4,957 6,266 993 2,519 5,500 1,617 1994-95 4,913 5,454 1,349 3,097 2,145 9,018 1995-96 5,031 5,151 1,492 2,796 1,992 7,594 1996-97 5,227 5,437 1,952 2,973 1,993 11,781 1997-98 5,982 5,216 2,981 3,269 1,709 14,150 1998-99 7,293 5,217 2,795 2,762 1,857 9,159 1999-00 8,549 5,256 2,668 3,426 1,906 8,371 2000-01 9,680 5,314 2,772 4,880 2,474 8,413 2001-02 10,634 5,321 1,855 2,984 2,894 9,149 Contri- butions Fiscal from Charges Fines Property for and Other Year Owners Services Forfeitures Revenue (3) Total 1992-93 $3,212 $397 $82 $634 $28,808 1993-94 426 3,005 192 1,308 26,783 1994-95 647 3,525 178 5,045 35,371 1995-96 669 4,233 154 734 29,846 1996-97 718 6,985 150 1,982 39,198 1997-98 1,037 7,474 145 2,162 44,125 1998-99 5,622 8,226 257 2,133 45,321 1999-00 12,963 8,288 256 7,303 58,986 2000-01 350 8,152 267 2,973 45,275 2001-02 558 8,070 292 2,178 43,935 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions from Assessment Districts and Other Revenue. 104 City of Chino Hills General Governmental Expenditures by Function (1) Last Ten Fiscal Years (2) (In Thousand Dollars) General Community Culture Fiscal Govern- Public Public Develop- and Year ment Safety Works ment Leisure Other (3) 1992-93 $2,635 $3,282 $13,569 $1,072 $ - $ - 1993-94 2,360 2,847 8,282 1,824 642 2,906 1994-95 2,020 3,006 10,005 3,463 1,326 1,725 1995-96 3,514 3,131 10,476 1,769 868 2,102 1996-97 3,388 3,404 10,680 2,466 848 8,308 1997-98 3,410 3,402 12,341 3,946 1,065 5,949 1998-99 4,026 3,622 12,298 3,784 1,404 5,224 1999-00 4,610 3,631 19,493 4,605 4,576 2 2000-01 4,733 3,906 13,798 3,944 2,167 2,872 2001-02 4,579 4,347 13,230 3,615 2,266 1,761 Fiscal Capital Debt Year Outlay Service Total 1992-93 $7,790 $7,693 $34,343 1993-94 19,680 4,265 45,491 1994-95 8,233 10,344 40,436 1995-96 6,427 5,489 33,776 1996-97 4,238 6,066 39,398 1997-98 4,919 8,573 43,605 1998-99 13,108 8,465 51,931 1999-00 18,060 6,699 61,676 2000-01 3,887 4,919 40,226 2001-02 14,364 3,211 47,373 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions to Assessment Districts. 105 City of Chino Hills Secured Property Tax Levies And Collections (1) Last Ten Fiscal Years (2) Total Total Percent of Fiscal Current Current Levy Year Levy Collections Collected 1992-93 $777,704 $686,550 88.3% 1993-94 1,231,289 1,086,243 88.2% 1994-95 1,240,010 1,114,018 89.8% 1995-96 1,250,014 1,154,794 92.4% 1996-97 1,299,249 1,187,694 91.4% 1997-98 1,379,405 1,267,811 91.9% 1998-99 1,473,928 1,360,530 92.3% 1999-00 1,600,751 1,455,148 90.9% 2000-01 1,695,233 1,605,518 94.7% 2001-02 1,866,919 1,783,954 95.6% (1) Source : San Bernardino County Auditor/Controller-Recorder. (2) The City was incorporated on December 1, 1991. Assessed And Estimated Actual Values Of Taxable Property (1) Last Ten Fiscal Years (2) (In Thousand Dollars) Total Assessed Fiscal Real Personal & Estimated Full Year Property Property Exemptions Market Valuation 1992-93 $2,829,913 $0 $62,416 $2,892,329 1993-94 3,016,447 26,176 65,156 3,107,778 1994-95 2,922,716 30,394 67,986 3,021,096 1995-96 3,039, 526 33,121 70,618 3,143, 265 1996-97 3,172,581 35,792 71,667 3,280, 040 1997-98 3,394,998 33,522 75,256 3,503,776 1998-99 3,681,005 36,219 77,763 3,717,224 1999-00 3,913,460 43,466 80,014 4,036,940 2000-01 4,143,434 45,091 78,061 4,266,586 2001-02 4,591,137 45,347 83,251 4,719, 735 (1) Source : San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 106 City of Chino Hills Property Value, Construction and Bank Deposits Last Ten Fiscal Years (1) (In Thousand Dollars) Property Value (2) Fiscal Year Commercial Residential Exemptions Total 1992-93 $136,050 $2,693,863 $62,416 $2,892,329 1993-94 117,796 2,924,827 65,156 3,107,778 1994-95 118,278 2,834,832 67,986 3,021,096 1995-96 204,341 2,868,306 70,618 3,143,265 1996-97 204,009 3,004,364 71,667 3,280,040 1997-98 227,893 3,200,627 75,256 3,503,776 1998-99 243,857 3,395,604 77,763 3,717,224 1999-00 (6) (6) 80,014 4,036,940 2000-01 (6) (6) 78,061 4,266,586 2001-02 (6) (6) 83,251 4,719,735 Commercial Residential Construction (3) Construction (3) Fiscal Number Number Bank Year of Permits Value of Permits Value Deposits (4) 1992-93 $0 $0 $813(5) $38,677 $67,936 1993-94 0 0 1,408 72,505 79,589 1994-95 0 0 1,696 96,949 92,816 1995-96 0 0 1,953 114,439 108,745 1996-97 N/A N/A 2,295 142,663 127,959 1997-98 N/A N/A 2,298 183,502 236,511 1998-99 N/A N/A 1,872 146,441 217,543 1999-00 N/A N/A 1,767 144,821 240,728 2000-01 N/A N/A 1,827 131,170 278,165 2001-02 N/A N/A 1,584 121,498 327,579 (1) The City was incorporated on December 1, 1991. (2) Source : San Bernardino County Assessors' Office. (3) Source : City of Chino Hills building and safety department. (4) Source : The Findley Report. (5) Information related to a six-month period of the fiscal year. (6) Information was not available at time when this report was prepared. 107 City of Chino Hills Computation of Direct and Overlapping Bonded Debt General Obligation Bonds (1) Fiscal Year 2001-02 Assessed Valuation: $4,719,735,141 Computation of Limitation to Debt Margin June 30, 2002 (In Thousand Dollars) Total Assessed Valuation Debt Margin Equal to 15 Percent of Assessed Valuation Limitation of Debt Margin Bonded Indebtedness as of June 30, 2002 108 $4,719,735 15% $ 707,960 % Debt Direct Bonded Debt : Applicable 6/30/02 City of Chino Hills 1915 Act Bonds 100.0000% $16,748,000 City of Chino Hills - Community Facilities District #1 100.0000% 7,030,000 City of Chino Hills - Community Facilities District #2 100.0000% 4,060,000 City of Chino Hills - Community Facilities District #4 100.0000% 2,175,000 City of Chino Hills - Community Facilities District #5 100.0000% 1,495,000 City of Chino Hills - Community Facilities District #8 100.0000% 2,255,000 City of Chino Hills - Community Facilities District #9 100.0000% 14,210,000 City of Chino Hills - Community Facilities District #10 100.0000% 13,040,000 Sub -Total $61,013,000 Overlapping Bonded Debt San Bernardino County General Fund Obligations 6.93700% $71,772,630 San Bernardino County Pension Obligations 6.93700% 24,579,057 Metropolitan Water District 0.4460% 2,243,715 Chaffey Community College District Certificates of Participation 15.6280% 1,452,623 Chino Unified School District 53.1990% 21,279,600 Chino Unified School District Certificates of Participation 53.1990% 33,595,169 West Valley Vector Control District Certificates of Participation 43.2590% 296,758 Sub -Total $155,219,552 TOTAL DIRECT AND OVERLAPPING BONDED DEBT $216,232,552 (2) (1) Source : California Municipal Statistics, Inc. (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations. Ratio to Assessed Valuation Direct Bonded Debt 1.29% Overlapping Bonded Debt 3.29% Total Direct and Overlapping Bonded Debt 4.58% Computation of Limitation to Debt Margin June 30, 2002 (In Thousand Dollars) Total Assessed Valuation Debt Margin Equal to 15 Percent of Assessed Valuation Limitation of Debt Margin Bonded Indebtedness as of June 30, 2002 108 $4,719,735 15% $ 707,960 City of Chino Hills Principal Taxpayers (1) June 30, 2002 (In Thousand Dollars) Taxpayer CTF-8 Village Oaks K/B Retain Properties, L.P. ERP Operating Limited Partnership LBK, L.P. LDC Cougar L.L.C. Evans Withycombe Residential, L.P Chino Hills Mortgage L.L.C. Centex Homes Eagle Hardware & Garden, Inc. Quong, Paul Total Assessed Valuation for FY 2001-02 : $4,719,735,141 (1) Source : San Bernardino County Assessor. Property Tax Rates - All Direct and Overlapping Governments (1) & (2) Last Ten Fiscal Years 2001-02 Percent Chino Assessed of Total Type of Business Valuation Valuation Developer $ 21,328 0.45% Shopping Center 21,322 0.45% Developer 18,611 0.39% Developer 14,808 0.31% Developer 14,090 0.30% Developer 13,186 0.28% Developer 12,750 0.27% Developer 11,783 0.25% Shopping Center 11,598 0.25% Shopping Center 10,663 0.23% 1.0377 $150,139 3.18% Total Assessed Valuation for FY 2001-02 : $4,719,735,141 (1) Source : San Bernardino County Assessor. Property Tax Rates - All Direct and Overlapping Governments (1) & (2) Last Ten Fiscal Years (1) Source : San Bernardino County Auditor/Controller-Recorder and Assessor. (2) Tax rates are per $100 of Assessed Valuation. (3) Property Tax Rates For FY 00-01. The FY 2001-02 information was not provided to the City by the San Bernardino County Auditor/Controller-Recorder Office at the time this report was prepared. 109 Chino Chino Basin General Unified Municipal Fiscal Basic School Water Year Tax Lew District District Total 1992-93 $1.0000 $0.0333 $0.0117 $1.0450 1993-94 1.0000 0.0250 0.0089 1.0339 1994-95 1.0000 0.0288 0.0089 1.0377 1995-96 1.0000 0.0336 0.0089 1.0425 1996-97 1.0000 0.0490 0.0089 1.0579 1997-98 1.0000 0.0000 0.0089 1.0089 1998-99 1.0000 0.0000 0.0089 1.0089 1999-00 1.0000 0.0000 0.0089 1.0089 2000-01 1.0000 0.0000 0.0088 1.0088 2001-02 1.0000 0.0000 0.0088 1.0088 (3) (1) Source : San Bernardino County Auditor/Controller-Recorder and Assessor. (2) Tax rates are per $100 of Assessed Valuation. (3) Property Tax Rates For FY 00-01. The FY 2001-02 information was not provided to the City by the San Bernardino County Auditor/Controller-Recorder Office at the time this report was prepared. 109 City of Chino Hills Miscellaneous Statistics (1) June 30, 2002 Date of Incorporation December 1, 1991 Form of Government Council -Manager Number of authorized full time positions 119 Area in square miles 46 Population: January 1, 1993 45,612 January 1, 1994 47,249 January 1, 1995 47,791 January 1, 1996 49,763 January 1, 1997 51,418 January 1, 1998 54,667 January 1, 1999 58,086 January 1, 2000 60,236 January 1, 2001 69,183 January 1, 2002 70,952 Facilities and services Miles of streets 193 Culture and Recreation: Parks 34 Park acreage 208 Sewage System: Miles of sanitary sewers 255 Miles of storm sewers 190 Number of service connections 18,674 Average daily treatment in gallons 6.0 Million Gallon Water System: Miles of water mains 295 Number of service connections 20,080 Average daily consumption in gallons 15.63 Million Gallon Total Storage 34.53 Million Gallon Facilities and services not included in the primary government Cable Television System Miles of service 451 Number of satellite receiving stations 4 Education : Number of elementary schools 9 Number of secondary schools 4 (1) Source : City of Chino Hills, Chino Valley Unified School District, Adelphia Cablevision, and State of California. 110